How to secure private money

General Real Estate Investing
1

I want to ask a few people I know to let me borrow money for a rehabb project. What I need to learn is some ways to secure their money so that they feel ok about lending it.

Also I know banks are offering about .08% - 3% for savings accounts. What are some attractive returns for a private lender?

Thanks
auggflo

2

Howdy Auggflo:

My hard money lender pays his private lenders 14% interest and he gets the points. I am paying 12% to several 1st lien lenders and 36% to investors in 2nd lien position. If these are your friends I would start at 10% and see what happens.

3

Thanks Ted for responding. Just a question on the lien part, how do I write one up for a person or do they have to do it?

Thanks
auggflo

4

Howdy Auggflo:

Whatever makes the lender comfortable. You can borrow money personally without any agreement or get an attorney to draw the docs or get blank forms at Office Depot. You can get forms on line as well, most are just fill in the blanks.