confronting a potential private lender to start my first BRRRR

[Jeffrey Smith]

hello all,so i found a private lender and i told him of my plans to BRRRR properties...we never really spoke of the percentage i will be giving him, i just kind of suggested that it would be whatever made more sense for him as i would just be grateful and willing to show him how great this could be for us both...i have since been analyzing properties and am getting ready to approach him with some of the deals i found...I am now just nervous about now asking for the money because i'm sure he has been thinking about the risk etc especially since this is all so new to me as well and he is aware of this...Is there some kind of form or steps to show him that i will be taking to assure him of his money?

[Marcus Auerbach]

@Jeffrey Smith that's a big question:

Who is your private lender? If he's a pro, he knows what he is asking. 10-14% is common and 4-6 points. The good thing about working with a pro is that they will coach you on the deal, because they don't want you to fail. If a pro says he won't fund the deal, thank him for saving you from a desaster!

If you work with a friend or family member you can offer to split the profit. It seems fair, because they also share the risk with you. If you come out short, make sure you keep your lender whole and take the loss. Your reputation and name is really the most important thing to you in this game.

And don't sweat it; if you have a good deal it's easy to find money! You may not believe this, but it's been said 100 times and it is true! There is more money than deals!