What are considered to be fair percentages to be paid on private money?

[Jay Lancaster]

I'm working with a partner in an effort to acquire 8 properties to buy, fix and hold. When the same private lender is providing the funds for property acquisition and the estimated 3 to 4 months rehab costs what are the "customary" (If there is such a thing) percentages that would or should a person try to negotiate on repayment from an immediate cash out Refi? Should the Acquisition loan repayment be separate from the rehab loan?

[Jay Lancaster]

Quote from @Account Closed:

Quote from @Jay Lancaster:

I'm working with a partner in an effort to acquire 8 properties to buy, fix and hold. When the same private lender is providing the funds for property acquisition and the estimated 3 to 4 months rehab costs what are the "customary" (If there is such a thing) percentages that would or should a person try to negotiate on repayment from an immediate cash out Refi? Should the Acquisition loan repayment be separate from the rehab loan?

Hi! Jay,
The percentages for repayment in a situation like yours can vary based on the terms you negotiate with your private lender. It's important to consider factors such as interest rates, loan terms, and the specific financial arrangement you have with your partner. Typically, acquisition loan repayment and rehab loan repayment can be separate, allowing for more flexibility in structuring the deal. It's advisable to consult with financial professionals to determine a repayment percentage that aligns with your projects financial projections and goals.

Let me know if you need more help. 

Hey Ruby. thanks a lot. I appreciate it. What type of financial professionals are you referring to exactly?