case studies
D. 3 Primary Financing Types for Real Estate and Their Cost!

There are three primary types of real estate financing for residential deals:  Banks, Hard Money Lenders and Private Money Lenders.  This video discusses the Pros and Cons of each one, who should use which method, and most important of all:  how to calculate the cost of each financing type so that you don’t take on financing you can’t afford for residential real estate investing! (This is important because that can make or break your deal!)  Watch this short-term real estate financing video!



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Comments (34 comments so far)

  1. Fredrick Austin

    Daniil, thanks once again information. Knowing what great ways to fund our deals isvery helpful!

  2. Glenn E. Fleming

    Hey Daniil. As usual, awesome lesson and we appreciate your “big picture” approach before “delving deeper” with regard to the introduction of new concepts/terminology. Thank you again for always providing real-life scenarios and examples with your Rehabvaluator software presentations! One hypothetical scenario w/ question: I successfully obtain a private money loan for a rehab with the plan to rent to a tenant (or live in the property myself) but I am unable to refinance with a conventional bank loan at the end of the rehab (due to the usual…credit, no collateral or no cash in the bank, etc). Is there any other option besides being forced to sell the property to a motivated buyer/investor?



    • JacobC

      Hi Glenn,

      First, you might try renegotiating with your private money lender. See if they’ll do a long term hold or possibly do a rent/profit split with you (you could rent the property, split the rents, and then split the profit when you sell the property in whatever time frame you agree on). Alternately, you could do the same thing with another private lender/JV partner. Offer them the same deal of either straight interest or a rent/profit split with a preset holding period so you can pay off the original lien holder. If none of those options work and you have to get that original loan paid off you’ll probably need to sell. One thing to consider though is that if it’s a good deal when you sell you should make some cash. You could use that to help you get a loan for another property or make a sizable down payment on your own house.

  3. Great evaluator and keeping track of accurate records on all your transactions or deals.

  4. Excellent tool to structure your deals with accurate records on how much you make on each transaction or deal

  5. Pat Ncube

    Great information Daniil.

    • Daniil

      Thanks, Pat!

  6. Great content, I’m a Premium Rehab Valutor client and this software has given me major creditablity and every investor that has seen my marketing packets have been very impressed. Thank you Daniel!!!!

  7. It’s Great!!!

  8. Kevin Decker

    It is amazing to see the comparison of the different types of loans. I never realized the savings to be made by using a private money lender. Great job in breaking it down for us!!

  9. Fumei Loh

    I need short term financing for two years or so. Do you provide any information for it?

    • Daniil

      All the education we provide is on this site. Including this content on the page here!

  10. Thanks Daniil, very informative, I look forward to to next video

    • Daniil

      You’re welcome, Andy! FYI – you can access the rest of the videos via the menu at the top also!

  11. I don’t have a website but really liked your financing video. It was very helpful in determining costs so I won’t lose money. Thanks. Harry

  12. I really learned a lot about financial costs. Thanks. Harry

  13. Shirley

    Thank you, Daniil! The Rehab Valuator appears to make it easy to compare the sources of financing one’s real estate investments. I was impressed by the structuring of private money financing, especially with the personally suggested offer of the interest rate that hopefully would be acceptable to a private lender.
    I will have to do much practice to become comfortable with the numbers crunching; your demonstration makes it sound and look easy to duplicate. Thank you again!

  14. Lori

    I’m new to real estate very much a amateur so I yet to have a lot. To learn much like all your video’s very informative thanks!

  15. Troy Butler

    Hi Daniil i recently purchased your Valuator Premuim , i am learning how to use it and it is very helpful as far as the tutorials , but im just starting and my problem is finding these private money lenders. I have deals sent to me everyday i can analyze them quickly with your software and i can determine if its a good deal or not., Im just looking for the money im am a Carpenter and i have a crew of tradesmen to do all the work needed on these properties my biggest problem FUNDING hopefully ill be able to solve it soon . i look forward to the next video

  16. William Anderson

    Hi Daniil, this program works just fine, I am putting together a purchase and rent for one year and finance for 20 years. Everything looks good, but I have a few question I will email to support.



  18. Thanks, great stuff.

  19. Great Presentation. Is there any way to print the example screens?

    • StefanieK

      Hi Philip-
      The only way to print from a video would be to do a screen shot and print that.

  20. Robert D. Smith

    So happy I have rehab valuator!!! Best investment ever!!!!

  21. Hard L

    Great content, Daniil.

    I’d recommend incorporating a “deal comparison worksheet” that populates automatically. Rather than moving back and forth from software to, in this case, .ppt as you did in the video, enable software inputs for different scenarios, to produce the .ppt, i.e. worksheet?

    Still new to RE and your products so, minimizing opportunities for mistakes or inconsistent entries across each type of lender, increases user confidence in results.

    Thanks again

  22. Your videos/lessons are very informative and valuable…I will be upgrading the comeing week

    • StefanieK

      Thank You Barry, we work hard to provide you the best possible service.

  23. Once again thanks for all the information. I look forward to your videos and each time I learn a little more thank you very much.and I know my next step is to upgrade to Premium.

    • JacobC


  24. Randy Campbell Sr

    Great info Daniil. I have the lite version of rehab valuator and look forward to using it. This actually opened my eyes to other places to look for monies for investments. Thanks

    • Dylan Hampson

      Hi Randy,

      We are happy to have you! Please reach out if you ever need anything.