Private Money... Relative

[Tommy B.]

Hypothetically speaking, how much flat interest would you offer a wealthy relative for a 90 day loan of $60K? $3K for a 5% ROI? 6K? Less? I'm curious what others have done to make it worth it for the relative.

[Jon Holdman]

If you mean you will use the price you paid as the "value" for the new loan (i.e., refi for 80% of what you paid for the house), then this should be possible. Some lenders will also include documented rehab costs. If you mean you want to do a new appraisal and use that for a value, it not impossible, but unlikely. Plan on waiting at least six months to use a new appraisal, probably a year. Especially for a cash out refi like you're going to be doing.

Talk to lenders, not lender. If you're been told no by two dozen lenders, you've still not spoken with enough.