It depends on the exit and if your the lender or the borrorwer. EX: If you wanted to get a 12% ROI / Yr on your money you could buy some RE Notes at a discount and get this rate of return. ... What is the 4mil for ?
Or you can invest in a discounted real estate proven income producer with Equity at closing....and get 10cap or better per year.You already are ahead of the game when you close.
12-14% do you want debt only or equity partners?
What's the LTV and DCR?If they are in line with market parameters (let's say 70% LTV and 1.3 DCR) then I would expect a rate in the 6-7% range. We have a loan right in that ballpark with a major national lender.
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