Private Money Loans and how to cash out lender

[John McNamara]

Hello all:

Have a couple of rentals (both upside down!!) and flipped a couple of properties over the past couple of years in the Detroit area. Private Money question. The deals in this area of the country are unbelievable. Just in the area that I live, reo's going for $15-$50K for homes that were $100K plus 2 years ago. I know the business and "how to do it" but I'm not sure how you cash out a Private Lender?? I'm not talking hard money, I'm talking a private lender getting 10-15% back on their investment. Are they supplying all cash and I'm just giving them a cut ($5-10K) from proceeds at closing??? To make it clearer- What's my exit strategy with a private lender to get them their cash????? Are we trying to sell these properties or simply rent out with a decent positive each month????