Terms for a potential private lender

[Kyle Howard]

Hey there BP fam I currently have an awesome individual who’s looking to invest without being hands on and the relationship sounds like it would be a great fit. Only thing is for me is what terms have some of you used for your private capital? What has worked and what hasn’t.

[Mike B.]

@Kyle Howard - family, friend, etc.. I think it's all the same.  Have a frank discussion about their investing goals and specifcally what rate of return they're seeking/interested in.  You would be surprised, some people can't/wont invest in stock market so they want a lower annual interest rate.  Some people only want interest monthly payments and a ballon in a year, etc.

I've done this with family and I did 1% interest monthly, no payments, full balloon and interest payment within 8 months.  They're usually happy with that.  I've borrowed from others that we did 10% flat interest rate for 12 months, with no payments, etc.. until month 12 when I payback balloon plus full interest rate owed.