What are attractive terms for private investor

[John Cava]

Hi - We own one SF rental home free and clear in a self-directed IRA, and are purchasing another on contract from the owner. It's under way and going well, but to make our first payment we need to either sell the first home (rather not), or get a 5 year loan on it. We are provisionally approved for a non-recourse loan from one of the couple of national banks that do this - last year it was 5% but the fees were pretty high. We were going to ask some folks who might be interested in a private loan, but I wondered what an attractive rate/terms were. They would be in first position on the first house, which will appraise in the $475-525K range and the loan is about $150K for 5 year max (that's our balloon date max.). 5%, 6%, more? Thanks in advance for any thoughts! John in Portland