PPM + Loan Agreemnts for STR Structure

[Charles Schram]

Hi, looking for insight on how best to structure loan agreements with private investors to syndicate money for short term rental investments. Looking to raise $100-400k per investor so wondering if 8-12% annual return sounds right. What timeline is typical to pay back investor on a short term rental and is it necessary to give equity on profit + sale of home or can it be a straight interest payout on say, a 5 year timeline? 

Working on deals in Riverside + San Bernardino County with a great time if anyone is interested in investing! I’m an architect/investor with a great builder/investor partner and we’re very active. Thanks! 

*Agreements please excuse type in title. Can’t find way to edit the title :)

[Andrew Garcia]

Hi @Charles Schram, why are you looking to syndicate debt with investors? Why not get an STR DSCR loan from one lender and just raise the other 25%? It would be easier and have a lower rate.

Or, is the $100-$400k for the 25%?