What Interest Rate to Expect from Investing in Private Money Lending

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If you don’t know what you should get in terms of interest rate, or you don’t know how to evaluate the risk, get a mentor or hire third party professional who give you their opinion of the deal, they’ll go into a sucker deal even if they’re offering you 12 to 15%. So this is very common, you know, most newer investors will just be shopping based on rate. Let’s just say for example, you’re taking a first lien on a property anywhere from eight to 12% is the normal range. But if you’re working with a newbie, I mean, I wouldn’t even invest in that type of deal. But if you had to have maybe 15, or 20% might be fair. A lot of people in my collective genius mastermind these are the pros flipping over 100 houses per year, they have investors that are lend money to them at low single digits, which is crazy. I sure like to get some of those guys to invest with me, but that’s what reliability does. And in the grand scheme of things is something is very reliable, it’s a lower risk, and they’ve earned it they earned the right to pay 5% for money.

 

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