You'll pay:
- 3.5 points up front
- 9.375% annual interest (.78125% of the loan amount monthly)
- All closing costs
- All partnership agreement documentation costs
- A percentage of the profit from the deal on the back end (typically a minimum of 10% of the total loan amount or 33% of the final deal profit, whichever is greater, negotiable)
- Terms are negotiable for Big Dogs and Lone Star team members... just ask!
Example: Hypothetical $100,000 loan to acquire and rehab a property over a 3 month term, you'll pay:
- $3500 up front points
- $781 monthly interest X 3 months = $2344
- $500 estimated in closing and partnership agreement costs
- Total Base Cost of Money = $6344
- Partnership fee of minimum 10% of $100,000 = $10,000
- TOTAL COST OF MONEY PARTNERSHIP = $16,344
Typical Terms:
- Loans can be drafted for up to 6 months, then terms can be renegotiated.
- First lien positions only
- All Big Dog rules apply: JV agreement, note, closing with Alan Ceshker, lender named on property insurance, borrower signs a personal guarantee, etc.
- Loan amounts up to $500,000 available