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12% Interest OR 18% profit share

Nicholas Saltzman

What’s the better option for you ?   Do you want a guaranteed rate of return or is a % of the profit more enticing?  I am genuinely curious in your opinion on this topic as I have been raising money lately for my projects and some lenders prefer one over the other.  Note: I only offer profit sharing to lenders who can bring 100% of the funding needed (1st position).

For example (one of our newer projects currently under rehab in SC with a 10 week rehab)

Purchase Price: 125k

Rehab: 71K

Resell Price: 280k


What’s your thoughts?


    • Nicholas Saltzman

      Yes I currently have investors under both options.  Most of the homes I purchase start at 100k and go up from there.   Since there’s a lot of lenders here are not liquid in 100k + category, I am currently looking into pooling funds from multiple investors for 1st position (need to find the right attorneys to facilitate this in SC and FL.). Minimum for 2nd position starts at 25K at 12 %.