Doing my first flip and lender wants me to name the terms.

[Susan Clark]

I'm getting ready to do my first flip and I have a private lender who I asked what their interest would be in financing the rehab for this project. I used this same lender to buy a buy and hold single family. This lender who is new to the scene as well as I am said they'd be interested but what would the terms be. 

My question to all of you is, what are reasonable terms without over doing it for us or skimping on their generosity as well. 

Thanks

[Austin Fruechting]

If you were in there shoes what would you want? For something that will be 3-6 months I would say around 10% APR with no points should be solid for short term private lending without giving up too much. You want to make sure they're happy with their returns and keep lending. If you keep doing flips and they keep lending where they're lending year round 8% no points would be solid.

Edit to add: I just gave a private lender 12% with no points even though they may have done it for 8%. I only needed $50k for probably 3 months. They'll get $500 per month. The difference from 8% to 12% doesn't make much difference on this to me, but makes them happy.