Experienced Builders Please
I am looking for suggestions on how to structure a deal between myself and a person willing to fund a spec home or several spec homes. What would be a fair way to structure the loan and a return that would be attractive to the lender yet profitable for me? How should I set up the interest and payment terms? I will be asking for $150,000 to start and see what happens from there. Any suggestions would be appreciated as I would like to put something together that looks professional and is well thought out. The person has access to a great deal of money and if I present this correctly I am sure he will lend me the money as it is a friends uncle, so he will have confidence in my abilities. Thank you.
Pay a straight interest rate. Do not amortize payments. Interest only payments or accrued interest.
Security for the lender:
1. promissory note
2. mortgage
3. named as mortgagee on hazard insurance
4. limit LTV[ Edited by myfrogger on Date 01/16/2004 ]