Private Lending Advice Needed
I have two private lenders that want to invest in my RE business. I have never used private money before and we are talking very signifagant sums of money that I would have access to.
I offered them 15% interest only secured by the real estate that I purchase and 25% of the net when I turn it around. I offered to pay the 15% in quarterly installments
How do I set this up to make thier money secure?
Do I set up a partnership and use the partnership to purchase to properties?
Advice on how to proceed will be greatly appreciated.
In my area you can find hard money lenders that will lend you at 16% simple interest the full purchase price with only 1 or 2 pts. Why would you give anyone 25% of the net? You ought to be looking for guys that will loan you at 12% with no points.
simple transfer of title by deeding the property from yourself to the business.