Help with private money loan structuring

[Jeremy M.]

Hi all,

I've found an individual interested in doing some private money loans to allow me to buy for cash. However, this is an area I have no experience in yet. I've spent a few hrs on BP but I haven't understood enough specifics to be clear on what I want to do. This would generally be short term (6-18 months) loans that would allow me to buy, rehab, rent and  then refinance conventionally. Are these loans typically interest only, until the repayment? What kind of interest structure is used? Do I need to get my attorney to write this up for me? I want to be fair and have a win-win for both of us.

I'm looking at a first go of $75K purchase, $8K rehab, ARV of $125. If some of the collective wisdom here would care to outline some baby steps on this for me, it'd be much appreciated! Thank you!