Structuring private money deals

[Sean Eads]

Question for private money deals:

For those doing flip projects - how are you structuring your deals with your private money lenders whom don't require points. For a flip project in which you need 100k, are you offering them (lets say) 8-10% interest monthly or on total return after the flip is sold. For instance, a 100k private loan at 8% for 3 months would be 667/mon --> 2000 total return whereas 8% return on the 100k would be 8000. Obviously, the 8k return is more attractive for the private investor and less attractive for you as the flipper but wondering thoughts on how some of you all go about structuring deals where you are dealing with interest only payouts? Thanks!