Private vs lender money terms

[Gere W.]

What are differences typically of private money vs conventional loans terms?

Conventional: 30 yrs, fixed, amount loaned dependent on income + credit

Private: 1-5 yrs?, fixed?, dependent on?

[Kenneth Garrett]

@Gere W.

It depends on your project. If your flipping or BRRRR'g SFH, then it's short term private lending 6-12 months. The money is expensive 10%-12% typically. You would then sell or refinance out of it. Interest payments can be due at the end versus monthly. Private lender may fund the purchase and rehab 100% of the deal. Conventional is 20%-25% down and borrow (leverage) 75%-80%. P&I payments due monthly.