Comments on: 8 Borrow Private Money Do’s and Don’ts

By: Patrick Riddle

Patrick Riddle — Sun, 16 Aug 2009 20:54:21 +0000

Hey Ruth, structuring would depend on your exit strategy. I guess your planning on at least holding it for 3 years. Do you plan on paying the private lender their interest during the term of the investment or do you plan on paying it all off when the property sells?

~ Patrick

By: Ruth

Ruth — Wed, 22 Jul 2009 22:57:19 +0000

Hi Ptrick,
I have been following your advice and would like to ask a few questions.
1. How would you structure the use of private funds on a $500,000 purchase, asking for $100,000? This amount includes: Down payment, my commission of 10%, realtor fees and closing costs with seller financing 90%.
I would like to make sure that the investor gets paid when the property sells paying him 9%
on his money. I just don’t know the calculations of a 3 year term. Can you suggest the information?

Cordially,

Ruth Marshall

Dn Payment 50,000
My commission 25,000
Realtor commission if any 15,000
Repairs 5000
Escrow Fees 5000

By: Patrick Riddle

Patrick Riddle — Mon, 22 Jun 2009 12:01:35 +0000

You’re welcome Nicole! Adopt anything that makes sense to you … that’s why it’s here.

~ Patrick

By: MN Houses

MN Houses — Sat, 20 Jun 2009 08:56:19 +0000

Thanks for the tips, Patrick. I love your “reluctant position” idea. I think I would adopt some of those lines, if you don’t mind.

Cheers,
Nicole