Good terms for private money

[Dan Willcox]

I have a family member that is both in the position and willing to fund my first flip. What are good terms for that loan for both of us? I'm buying the house for $45,000. The ARV is $85,000. Repairs needed are $10,000. I can fund the repairs out of pocket. My first thought was getting $50,000 loan at 10% interest, no payments, balloon in 6 or 12 months. Does that sound to high, to low? I've talked to a couple hard money lenders in my area and they are charging 12.99% interest with at least 2 points......and they want $7500 minimum into escrow for repairs (my funds). I want to be fair to my family member so she gets a good return, but I don't want to overpay.