Updated over 3 years ago on . Most recent reply
STR with relative. Acting as Private Lender
Hey BP community. Looking to help fund a down payment with a relative on a property that I think has amazing potential. It's a few meters from the water, it is a very popular scuba diving spot in west palm beach and a location that gets many tourists. Now the occupancy rate for similar properties nearby are about 80% and ADR ranging from175-400. But this one is pretty unique in terms of views and proximity to water so I think we can get 350-500 on the low end.
So on to the terms, I am unfamiliar with how private equity deals are usually structured so I was thinking I can anywhere from 10-15% of monthly net revenue until they buy me out of my original 100k 15 months the earliest and 24 months the latest. What do you guys think? Has anyone structured anything similar with repayment period or exit strategy. Thanks