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Updated over 2 years ago on . Most recent reply

Private Lending Structure
Hey everybody!
New to BP here, but not REI. I currently have an SFR in LA, 3 in Atlanta, and short term in Blue Ridge GA. All of these where procured the conventional way with my own hard earned money used as a down payment.
Now looking into the private lending strategy. I have a friend that is well off wiling to lend me how ever much I need. He like the idea of real estate as an investment, just doesn't really want to do deal with any of the nuances of real estate. What would be the best way to structure a "friend to friend" loan and what can I expect to be a fair interest rate and terms?
Most Popular Reply

@Bryan Kelly
1. Get friend to friend mentality out of your head. No friends in business. If you lent someone money and they didn’t pay back would you be like “it’s ok they are my friend” said no one ever
2. Get a title company and they can create the documents
3. Terms we use are 10 year term at 8-12%. Some do 30 year am with a 5-10 year balloon
- Chris Seveney
