Ways that a PML Gets Paid

[Yan Garcia]

I'm a bit confused on how a PML gets paid. I understand they get paid by interest payments but it seems to be a slow return. A $20k loan, 30 months, 9% is coming at ~$2400 in interest. That won't be appealing to my money partner. I'd like to ask about a % split. If a rental cash flows at $800/month for example, and split is 50/50, I would assume the PML gets $400 a month. Is this how the % split works with PMLs? How do you guys structure the deal so that it's attractive to a PML?