Posted by Nate on October 30, 2000 at 13:02:48:
I think you can probably do a bit better than that. In my area (DC) most lenders are quoting 12%-15% with 4-6 points. Their targeted rate of return is going to be in the 18%-20% range no matter how you cut it. But you should be able to get something less expensive than 25%.
Private lender terms??? - Posted by Brad (GA)
Posted by Brad (GA) on October 28, 2000 at 23:50:11:
I recently met with a private lender and his rates/terms were as follows:
14.5% Interest
11 Points
Someone please tell me this is not the norm. That just about eats up all my profit.
Thanks and good day!
Re: Private lender terms??? - Posted by Ray
Posted by Ray on October 31, 2000 at 24:00:57:
I live just outside Cleveland Ohio and of the 9 private lenders I’ve found only 1 is different than the rest. 8 of them are at: 10pts. - 18% - and the one that is different is at 10pts. - 18.75%! However, I do take a little comfort in the fact that there is a better way. While I may not be able to qualify for attractive long term financing within the next couple of years, I won’t have to pay those high costs for money. Why? Because I was recently introduced to Merle E. Woolley. (not in person, but to his ideas and methods)I read one of his posts on the other board and then spent the next several hours in the archives, cutting and pasting his posts into a word document so I can refer to them often. If you don’t know about his system for private investors go to the archives and run a search for his name.
Just another Idea…
but I think I’ll put this one into action. I was already just about finished with my business plan, now I have another use for it. Maybe I’ll even make another version to present to different types of investors, hey, there’s another idea
Good Luck