When using hard money loans what’s the avg ROI for the investor

[Brad Derry]

Hey guys so I have someone who’s looking to invest with me and let me use $30,000 of their money.

My question is what’s the average return on investment? My plan is to paint a good and clear pic on what to expect and how much of a return he’ll receive.

My next question is when talking to him initially he mentioned he like getting his money back fast. Is Brrr a good strategy to use in this situation ? I’m located in Connecticut and really want to make a good impression.

All opinions and recommendations Are appreciated in advance thank you !

[Allan Smith]

Hard money is 12 - 15% interest. I pay some private lenders 6 - 10%.

My equity partners on a 4-build development deal will make out with about 25%. When bringing equity partners on flips and developments, I shoot to give them enough equity that they are projected to make 25 - 30% on their money.

There's a developer buddy of mine here in Nashville and he gives his partners 50% for making the down payment and they make about 40% on their money.

Your $30k  friend would probably do fine with 10 - 12%.