Can we offer potential investors interest only(say 10-12%) payments, with a ballon due at the end of our hold period? Is a return on appreciation also needed or required?
You can stucture your deal how ever you would like
But do you think a money partner would go for it? What do you suggest as the best proposal?
Many investors won’t bite at rates that low, especially if you aren’t offering any points up front.
How many points do you suggest? Aren’t the points the interest only payments? We are offering higher than available returns from banks and other types of investments. Coupled with a split of the profits at the end of the 3 year hold time, isn’t this a good ROI. The promissory note would obviously be secured by the property, with full recourse due our money investor.