All Forum Posts by: Roberto Lopez

Quote from @Matthew Crivelli:

If they are giving you 100% financing I would say 12% - 15% of the total loan amount is around the going rate. 

It's the details of the loan that matter. Their are different ways to structure these loans.

Let's say 3% origination & 12% monthly interest only payments spread over 6-12 months OR 15% monthly I/O payments until the loan is paid in full. Is there any type of pre payment penalty?

Just make sure you know what you are signing! 

@Roberto Lopez

Thank you for the reply!! So if I understand correctly, If I get 100% financing for let's say 250K at a 13% monthly interest payments spread over 6 months I would pay $2,708 a month. $16,250 for 6 months correct? And when I sell the property i give them back their initial 250K with them profiting the $2,708 a month for however long the deal take?

Thank you for the reply!! So if I understand correctly, If I get 100% financing for let's say 250K at a 13%  monthly interest payments spread over 6 months I would pay $2,708 a month. $16,250 for 6 months correct?

I am on the verge of accepting private money from friends and family who trust me and know the capability of the business. I am struggling to understand just how much I should be charged for the private money. They aren't really RE investors but want to invest through me. Is there an "Average" percentage I should be paying them for their money or should I pay them a high return so they can stay motivated and keep investing in RE through me?