Question about Private Money Loans for Real Estate

[Harold Wimberly]

I have been reading about attracting private money investors for real estate. I wanted to know if anyone has had success attracting private money. Also, I'm thinking of running an ad for private money and I wanted to know if my loan terms were attractive for potential investors. I have invested in Real Estate and I was a Mortgage Broker.

$50,000 loan secured by a property in the suburbs of Cleveland. This property sold for $85,000 in 1999 and listed for $110,000 in 2008. It's ready to move in and needs very little sweat equity. I will live in the property.

$50,000 for 18 Months. Interest only with 6 months pre-paid upfront. $50,000 Balloon payment due in 18 months. If I refinance or sale the property in less than a year, you're still guaranteed to get the 12% return for the year.

This is a better return than any bank, CD, money market account or stock return in this volatile market.

How does it sound?