What type of interest rate do you pay?

This is the continuation of the frequently asked questions for working with a private lender in your real estate investing business. This particular question that we answer is: What type of interest rate do you pay?

Here is our answer:

We pay between 6% and 12% on money we borrow secured against real estate.

Why such a large range? Our most common loans are loans where we offer between 6% and 9%. These loans are secured by a first mortgage or deed of trust against the property. These loans typically have low loan to value ratios.

From time to time, we may also have other loans where we are looking to borrow money with a second mortgage on a property and for these we offer between 9% and 12%. These loans typically have higher loan to value ratios.

Until my next post,

James

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