Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
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 12 years ago on . Most recent reply

User Stats

289
Posts
95
Votes
Christopher W.
  • Residential Real Estate Agent
  • Orange County, CA
95
Votes |
289
Posts

How much to pay private lenders?

Christopher W.
  • Residential Real Estate Agent
  • Orange County, CA
Posted

Like the title says, how much do you pay your private lenders? I have seen that 8% - 15% seems like the average.

Now another question - is that 8-15% on the money they lend you or of your final profit?

Most Popular Reply

User Stats

15,747
Posts
10,945
Votes
Will Barnard
  • Developer
  • Santa Clarita, CA
10,945
Votes |
15,747
Posts
Will Barnard
  • Developer
  • Santa Clarita, CA
ModeratorReplied

Chris,

You asked about private money lenders and not hard money lenders. All the answers you received are about hard money loans.
I rarely pay points on private money loans. Most deals get 10% or 12% interest based on the loan amount.

So in your example of a $100k loan, at 12% interest, yes, you would owe $1k a month. Typically, I have the loan contract to pay the principle and interest in one balloon payment, and not monthly interest payments, so at the end of the term, say 6 months on flips, I would pay the private investor $106k

For holds, I would structure the interest payments monthly.

Loading replies...