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Updated almost 6 years ago on . Most recent reply

User Stats

13
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6
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Steven Nitschke
6
Votes |
13
Posts

Private money lenders

Steven Nitschke
Posted

Hey guys, so I’m currently in the process of building my rental property portfolio. I currently have a private money lender willing to help with deals, and finance solid properties. I have 2 questions within this topic:

If you have ever had a private money lender, what is an appropriate/possible way to negotiate paying initial investment back in the future and what they would receive over the top? A percentage of ownership? A percentage of rental income? I’m just not sure how people who execute deals with hard money lenders willing to pay for houses in cash, work out repayment agreements.

My other question say you were to buy the property, rehab, and refinance, how does that process work. Could you refinance the property, and then pull the initial investment of the private money lender out and then repay them immediately, plus a % over the top and then you would own the building free and clear on the refinance loan? I know these are probably basic and clear questions for a lot of you but any help is greatly appreciated. Thanks!

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