Privet Money

[Nicholas Gildner]

I am looking into a multi-family complex in my area. I have friends and family that will finance the property for me. I was look at ways to set up payments but am not sure what is the excepted way. Example:  I would loan $150,000 with interest only payments of $948 per month and at the end of 5 years pay a ballon of $141,000 back to my investor. This is an interest rate of 6.5%. At that time I would refinance with a conventional loan and pay off the investor. Has anyone done anything like this and how has it worked out for you?