Private Lending Terms

[Kelley Lefmann]

If one goes with a private lender (good relationship) vs. bank or prof. hard money lender, but seeks 100% financing for the first deal - is it better to go with a debt or equity partnership?  

Would love any input from those who have successfully begun their real estate investment careers using private capital. I know that private lending offers endless flexibility - just looking for some typical scenarios, to set our expectations.

Other questions:

1. Are private, interest-only loans generally due in <5 years? 

2. What, on average, is the % interest a debt partner would expect - and how can one compare to a conventional loan interest rate, if the length of a private loan is much shorter? (Residential as well as commercial.) 

3. For equity partners, do they typically take a cut of rental cash flow AND gains at time of sale? 

4. How is a deal structured if one is seeking 100% private lending for a foreclosure cash purchase? (Assuming minor cosmetic repairs, buy & hold rental, and refi in 3-5 years?)

5. What else should I be asking??

Thank you!

[Jay Hinrichs]

if you have limited capital then borrowing money is not an option and you will spend an inordinate amount of time chasing rainbows.. UNLESS you have direct family friends

you should be looking for JV partners.. they expect to be the cash and you the work.. then split of profits when you start you gibe the money the lions share until you prove yourself