Hard Money terms for partnership

[Keilon Morton]

I am looking to secure my first tax sale and need another investor to go in on the deal. What are some terms that would appeal to an investor? I've never had to use hard money before, so I am not sure what type of conditions are reasonable. I am offering 15% interest on the initial investment plus 40% ROI after a six-month grace period. What penalties are normal for this type of partnership?

[Chris Seveney]

Quote from @Keilon Morton:

I am looking to secure my first tax sale and need another investor to go in on the deal. What are some terms that would appeal to an investor? I've never had to use hard money before, so I am not sure what type of conditions are reasonable. I am offering 15% interest on the initial investment plus 40% ROI after a six-month grace period. What penalties are normal for this type of partnership?

It depends on the deal and the risk profile. How many tax liens have you acquired? What is the price of the tax lien. A $200k tax lien vs. $20k tax lien are two very different animals.

What you are offering seems more than generous but again - it all depends.