Updated over 8 years ago on . Most recent reply
100% Private Money Financing
My investor has offered me 100% financing, including a commission for myself, at 10% interest, a 1% prepayment penalty, and a 2 year balloon. I am currently using these terms on my renovations. Most of my transactions are structured with a $25,000 commission as well (I am a Broker) that covers are large portion of the repairs.
My question is, do you think it would be wise to invest in multi-family units with the same terms? I am looking to purchase several 4-plexes and/or a 5-12 unit property. Just looking for advice on private money financing on rental properties as a whole, I guess.
Most Popular Reply
I don't see why not. Sounds like a good structure for me. Except for these larger deals your commission will be higher.