How does this sound for Private Money?

[Lamont Marable]

I asked my followers on Instagram in one of my posts if they knew anyone that wanted to make 8% on their money. Simple trying to build up my cash buyers. Two people reached out to me and said they were interested. Here is what I wrote:

"Thanks for reaching out in my comments. I greatly appreciate it. I'm looking to borrow $50k. If you are pulling it from your self directed IRA I can pay the transfer fees. Time period is 6 months. Option 1. I can pay interest only @ 8% payments for 6 months with a ballon payment at the end of 6 months or Option 2. Pay 2 points upfront (1 point = 1% of the loan) with a 6.5 interest rate for 6 months."

They both replied back and said they’ll give it some thought. In other words, I’ll pass. It was worth a shot.

How would you word it?

[Juan Monge]

@Lamont Marable are you planning on providing them a secured (1st or junior) lien position on the note? If not, those rates may be too low for a first time agreement and for a loan of that amount and duration.

Try looking at it from their point of view, would you be willing to loan 50K unsecured to an acquaintance for the possibility of making 2K (option #1) or 2.6K (option #2)?

Also, I would proceed with caution on the willingness to pay for the transfer fee on the SDIRA, for many reasons, one of is simply the cost.

Hope this helps.