Updated about 7 years ago on . Most recent reply
First Deal, Private Money Questions
Hey all, first post so please show mercy!
I've been researching for about a year now and analyzing deals for the last few months. I'm interested in BRRRR, but need to grow some capital first by flipping. I feel confident I know what a good deal is now, but have to admit I'm in no position to fund any portion of it. I believe I've got the hustle, intelligence, and time to make up the difference. I also have some advantages (Realtor's license, a father and brother who are great GC's, and you guys!)
So I’ve found what looks like a great deal and has plenty of room for error. My only option is private money. I think I can raise the cash, but I’m curious what I should offer the lender(‘s). I see 12% mentioned often, but I’m curious if I should just give them a portion or even all of the profit? The way I see it, I’d make some money on my sales commission, but most importantly have my first deal in the bag and a potential blockbuster that would allow me to attract future capital.
Your thoughts?