Investor Terms
Hey say I approach a private person (ex-boss, plenty of cash) and ask him for a sum of money, say 100-130,000 dollars, what would are the types repayments that are normally arranged? Would you
A) Pay him back monthly with interest
B) pay him back within a period of time plus some cash for his initial invest ment when the peoperty is sold, -or-
C) use his cash to secure the property, then refinance enough of a 2nd to cover him & his cost, and enough to fix the peoperty up.
what are normal interst rates that are paid...what type of GMROI should I expect to pay?
Find out what your investor friend wants, then give it to them.
They may want to be a partial owner to get a tax deduction
You may do a split when you exit.
You can do fully ammoratized loans
Interest only loans
With or without points
or any combination of the above.
I want to approach him. how would you offer a deal?
You can't offer him anything unless you get him interested. Here is what someone said to me
"Lori, I know you have been investing for a long time. Did you ever consider investing your money with a pool of private lenders?""
What are you talking about?
I know you have a of mutual funds, stocks, bonds, ect.
And?
Well I know a group of REAL ESTATE INVESTORS, who would give you a better return on your money.
REALLY?
Get the point
Lori
[addsig]