Private Lending & Conventional Mortgage Advice
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal



Real Estate Classifieds
Reviews & Feedback
Updated about 2 years ago on . Most recent reply
Being a Private Lender to Flippers - Real Numbers???
I am considering the path of being a private money lender for fix and flip investors (I don't have the money to lend at this point, just doing the research).
I am curious as to the reality of lending out short term loans to flippers (IE 10% for 4-6 month terms). Assuming I take the proper legal precautions and lend to someone with a solid track record of flipping quick and profitably, this seems like a no brainer as it would return 20-30% annually.
Am I missing something? What are the real numbers I could potentially expect from doing this?
Thank you!
Most Popular Reply

Its not 10% for 3-4 months. Its 10% annualized rate. So if the borrower pays you off in 6 months, they will have paid 5% in interest.