How to repay personal lenders?

[Jonathan Blandino]

Hey BP fam, I have been reading on OPM borrowing and wondering the different ways to pay back the borrowers. 

Lets say I borrow 100k from a wealthy college friend as a down payment for a multi-unit property that cash flows immediately. Of course, I pay the monthly expenses first and then am I giving the rest to the investor back until they are paid back an agreed upon interest? Can I offer a small portion of ownership in exchange long term? Also how do I determine a good interest that I know Im making them a good deal? (Im sure this varies if they are family or etc but I want to make sure Im giving my investor a solid return as well)

I guess Im trying to learn how to present the best option for my investor to build a long term relationship while not drowning myself in being able to make a profitable deal. (Ive rambled on long enough lol) As always thanks in advance for any advice.

BTW, I have a potential job offer that would relocate me permanently to the DFW area which I would assume has some better deals than my lovely northern NJ. 

[Rikard Lorén]

Hello Jonathan !

As Adam just said, there is no right or wrong formula to structure deals.

You have to develop your own agreements and terms, something that you AND your lenders will be satisfied with. You could create a base concept and build on and change things from there with each approach to lenders since each lender is different from the other in what they value in a loan/deal.

Don't just look at the lenders as lenders, you should look at them as your partners and threat them fairly. Becouse if you threat them right, they will come back and lend you more money, threat them unfair and they will not come back or even join you from the beginning. At the same time you should not change the whole deal for a lender so it just fits them, then that particular lender maybe is not the right fit for you, skip and move on to the next one.

My point is: Don't be greedy, make something up that works for both you and the lender and if u want the borrowing/loan to appear more attractive, favour the lender (  an extra % int rate for example ), just small things that makes the deal/loan appear more favourable for them. I guess this concept is more for investors but i still think you should have the same mindset when dealing with lenders.