If you are currently a private lender or have considered it, please weigh in.

[Rich Weese]

Here is a question that was posed to me by an old friend recently. He is attempting to do some joint venture or syndication type transactions. In our conversation, I mentioned to him that I am aware of private individuals that loan money to rehabbers, builders, and private lenders on bigger pockets. This thread is for those of you that find yourself in one of those particular categories or have considered it. I have been told that many are loaning in the 8 to 10% range with payments for interest being made at the conclusion of the loan. My question is the following.

If you found yourself in that position or if you have considered that type of loan ,how much more likely would it be for you to make a loan on the following terms or conditions instead.

10% annual interest on a one-year note.

Monthly payments of interest only.

A share of 5% of the profit with a minimum of $500,000 to a maximum pool of $1,000,000 so the 5% would be a minimum of $25,000 up to maximum of $50,000.

The imaginary transaction would be as follows:

Total purchase price is $1,200,000. Property will ALWAYS be free and clear except for lenders Note.

A 33% share is available for $400,000 and may be acquired in its entirety or a percentage at the minimum of $100,000 per share with 4 shares available .

The total return to the investor would be $40,000 in interest and $25,000 minimum in % of profit for a total 1 year minimum return of $65,000 for a 16% total return, and a possible return as high as 22%.

All other terms and conditions are equal on the 2 types of transactions: security, % of money developer has in deal, length of note etc.

On a scale of 1-10, how much likelier would you be to do this transaction?

Disclaimer!!!!! This is not an offering in any way and I'm not the principal. Thanks for your time. Rich