Fair Private Money Returns

[Christian Ehlers]

Hi BP! I have been running my own STR for awhile now and am looking to expand by leveraging private money relationships (as well as some of my own money from my Real Estate Sales Business). I'd be looking for about $300K to $500K all in (Cash purchase plus rehab costs) from the private money lender. I'd be looking for Money only, I would manage the purchase, rehab, refinance and renting out of the property using BRRRR and then would like to rinse and repeat with the same money.

My question is what is a fair % return on the lender's money for something like this? I have heard very different numbers, I'd like it to be high enough that the lender feels good about it and wants to lend to me again afterwards, but also low enough that it still makes sense for me to use private money versus a hard money lender. I've heard in the range of 8-10%, but want to know what others have seen that are more experienced than I am....