Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Private Lending & Conventional Mortgage Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 9 years ago on . Most recent reply

User Stats

3
Posts
3
Votes
Marcus Andrews
  • Iron Mountain, MI
3
Votes |
3
Posts

Private lending payback

Marcus Andrews
  • Iron Mountain, MI
Posted

So this may be a dumb question but I'm going to ask it anyways....

I am new to investing and have done research for the past couple years. I have decided to make the jump this year. I have been looking at a few properties and am in the process of possibly putting in some offers. I want to go with private money and I can raise the money for a down payment from 2 (possibly 1) investor. 

My question is how do I pay them back. I see people talking about giving them 10% and paying them back in 12 months but I can't generate that type of cashflow from one property. I get that you can do that in a flip and pay them back but I don't see it in a buy and hold.

I also am aware of doing a cash out refi, but 1) I thought you had to have the property for a year before doing a cash out?? and 2) I won't have enough equity in the property to pay that investor off. Maybe I'm going about this wrong but that is exactly why I wanted to ask people that have done it.

Thanks for everything guys,

Marcus

Loading replies...