Private Money

[Brad Spies]

Hello everyone I'm a new investor from Saginaw, MI. I recently bought a duplex and a single family home. I have family that is willing to lend me 50k as an investor to cover the down payment on future properties. I need some advice on how to structure a fair deal with them. What is a fair rate of return on private money?

[Jeff Rabinowitz]

@Brad Spies, welcome to BP. This type of question comes up frequently. How can anyone know the right answer but you and your family? Talk to them. Ask them what they are expecting. What will your project allow? I know people who borrow money from family at 5% interest and their family is thrilled with that return. I know people who pay private lenders 18% and they are happy to have access to the funds at that rate.