closing costs and payoff of interest in a private investor loan

[James Palin]

Greetings from Dallas, TX

I am about to start searching for a private investor to fund a property that I am about to have under contract.  I got the verbal yesterday. 

Here are my concerns. 

If the investor is funding 100% of the deal, Do I or the investor pay the closing costs?  After all this is something that has to be paid and we don't recuperate it when we sell the property to an end buyer?

Also if I give the private investor 12% return.  How do I determine how much money is owed to the investor once I sell the property to the end user.  This of course would vary on how long I hold the property.  It could be 2 months, 3 months, 3 & half months or even 6 months?  Do I just do the math break down of per deim by day or is there a simpler way to do this?  Perhaps I am just doing to much over thinking.

Any feedback is appreciated.

Thanks,

James Palin