What are the promises and offers to make when borrowing Private Money

[Jason Kim]

Hello BP members,

I am studying hard to become a rehabber and here are some questions to ask to some of seasoned investors in this forum about private money.

I have enough money to fund one project to flip and I am currently working on the purchasing. Let's say that I finish the project few times my self and have made profits and gained confidents and knowledge, and wants to do few projects at once. If I were to ask for private money from people, I would show some of the projects I have done within certain timeline and also the profits I've made to show that I have the capability to do RE Investing.

Now when asking money from people, what are the normal promises(i know it's not the best word to choose) or offers when proposing to borrow?
People that I want to ask are normally who don't have much knowledge about RE investing, but have their own private business running and wanting to invest on the side.

- What are the normal percentages to offer?
- What is the timeline for project to finish and take profits?(I understnad that normal flips should take about 1-4months but when telling to private people, how much time should I buy from them?)
- What are the back up plans if the houses doesn't sell within the time I offered to them?
- Any other items that I should consider when offering to borrow?

Thank you in advance!