What interest rate should you pay if you borrow private money for one of your real estate

investing deals?

That's the question for today's edition of Ask Coach, and we're getting started right now.

Welcome to the Ask Coach edition of the Real Estate and Financial Independence Podcast.

My name is Chad Carson. You can call me Coach Carson as always. Really appreciate you being here today.

Private money is a form of borrowing money that I've used a lot in my real estate investing in business.

In fact, I've used it more than any other form of financing

to make a purchase. So it's something I know a lot about. I've been doing it since the beginning,

relative, almost the beginning of my real estate career. In case you didn't know what it was,

typically when you go to buy a property and you use financing, most people think of going to a bank,

going to a mortgage company,

making a down payment, getting a loan from that company. It's also possible, though, to go to individuals. So think about somebody who has some money just in the bank. They've saved some money.

They want to make a higher interest rate than just putting it in the CD in the bank or investing

in the stock market, they could loan you

the money to either buy the property and have all the money you need, or maybe they might loan you

some money for repairs. And so that is essentially what you're doing, borrowed from an individual or also

more commonly for me, an individual's self-directed retirement account.

So that's a whole other story on being able to do that.

But that's probably more common.

So you see a lot of people using their retirement account to make loans instead of owning the property directly.

But the question for this addition of Ask Coach is, what's an appropriate interest rate?

The short answer is, you as a borrower, of course, are trying to get as low

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