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?
Hi Nicholas,
Both options would be acceptable. Do you have investors currently? What is the minimum to take part?
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 %.
Dawn, for this specific property at the 125K purchase price, I am still looking for lenders.
Interested.
give me a call and lets talk ! 716.517.6567