I would like to find a private mortgage investor for my SFH rental that I own free and clear. Ideally the term would would be 20 or 30 years 7-9%. Is it as simple as posting on craigslist with the terms I want? How much info do I need to post? Are there any legal ramifications to doing it this way? What are some other ways to market this? All the things I have researched are for rehabbers looking for funding to buy/fix and flip. I did not see anything on a good old fashioned long term mortgage with out using a bank.
IMHO you are a little low on the rates if you are looking on CL for private funding. I have not had experience in this myself, but if I were actively seeking to loan private funds, there are many sites that advertise 10-12% return on shorter term projects. Active investors seeking borrowers will head here instead of locking up at a lower rate for so long.
If you want those kinds of terms, you are probably going to need to convert someone unfamiliar with using private IRA funds for real estate lending. For example, someone who worked and saved a lot in a 401k, is nearing retirement, and will probably not retire as comfortably as they’d like to on the returns of this turbulent market. 7-9% is a decent rate, but you will need to do a little convincing to do so.
Once again I haven’t done this myself, but from an active investor’s perspective lurking on forums and CL for deals, I wouldn’t be interested.
ChrisS
SK Home Buyers
I recently found a private investor on Kijiji. I offered 9% with a 2% bonus on signing. I had the papers drawn up and forwarded to the investors lawyer. This was a passive investor tired of earning 3.5% on a CD.
dave