Need Private Lender - Posted by Bill

Posted by John B. Corey Jr. on July 14, 2005 at 18:53:35:


I do such deals. Send me an email.

To all the others reading this. Notice how Bill presented things.

He implies that he will go up to 2 points for 6 months as if borrowing on such terms is expensive. Then he offers to split the profits as an alternative with the implies profit being $100K.

Most people think hard money is expensive but are very willing to split the profits. In most all cases there where is any real profit, the hard money solution is a lot less expensive and leaves more profits in the pocket of the person who found the deal.

Run the numbers and you will find that hard money for 6 months costs less then 50% of the profits. Even hard money for 12 months will cost less then 50% of the profits (if there really are decent profits that are worth splitting).

John Corey
Chelsea Private Equity LLC.

A litmus test. If the HML option is more expensive then you likely have a deal that lacks enough profit for the deal to be a ‘deal.’ Not 100% of the time but a good test to run before you get the property under contract.

Need Private Lender - Posted by Bill

Posted by Bill on July 13, 2005 at 17:43:11:

I am looking for a private lender who can put up $150k. Can pay 2 points per month for 6 months or split profit on deal. $100k profit in 4-6 months.