Updated over 7 years ago on . Most recent reply
How to use private money and structure the deal.
Hey guys,
I am just starting out buying real estate. I have two buy and holds under my belt and a neighbor of one of the properties came over and said he wanted to sell his house fast. I dont know the price yet, but I want to get private money set up before then. I have a lender who is new to the game of lending. He has a good basic and working knowledge of real estate. I want to come to him with the deal all put together. My question is, how are the loans structured? I am in Washington and will need the loan to be over a year long. I am willing to do 12% and am thinking I will need 100 grand from him. Can you break down the deal and how you would structure it? Thank you for your help.
Most Popular Reply
If I were your private lender, I would need a promissory note and a Deed of Trust recorded with the county assessor. I would take 12% all day if I knew the deal was a slam dunk. That is approaching hard money rates. For example, I just refinanced out of a hard money loan at 14% with 3 points.