case studies
M. Private Money Deal Structuring Tip: Pay Private Lenders with Their Own Money!

With private lenders, you’ll often want to defer your interest payments until you pay the lenders off.  But how do you convince your private equity lenders to wait to get all their $ ’til the end? This video on how to structure private money lender deals shows you a great deal structuring technique and allows you to massively decrease your “cash into the deal” while keeping your “cost of $” relatively the same.  Plus you’ll see how you can pay private lenders with their own money, and have them thank you!

Watch this private money lender deal video and leave a comment at the bottom! (And if you don’t have Rehab Valuator Premium yet, take advantage of the best deal we have and save 43% Here!)

Comments (42 comments so far)

  1. George Lekas


    As usual, you have delivered quality, actionable content, for FREE! I always recommend Rehab Valuator software to my clients/students, simply because it works! You still rock, man.

    HAPPY NEW YEAR to you and your family.

    • Daniil Kleyman

      Always good to hear from you, George! Happy new year to you as well!

  2. george campbell

    Hi Daniil.

    Hope you and your family have a great Christmas and new year i love the video and hope to start using it to get some private lenders to work with i have a great deal of rehab experience which i intend to used hope to have a very great year thank you.


    • Daniil Kleyman

      Thanks, George! Appreciate you watching!


    Thanks for giving us this training on private money. Happy New Year to you and your family.

    • Daniil Kleyman

      You’re welcome. Happy new year to you as well!

  4. Roosevelt

    This was very informative. Do the private money lending structure/deal you laid out require that a person has OK to good/great credit? I’m wondering does this work with someone who has say a bad credit score of like 500 or is that not a factor? I was always under the impression that private money lenders required a certain credit score.

    Also, are private money lenders available on your site as a premium member? I ask because I am a premium member and I have a property owner who is looking to one or more of her properties.

    First property is a duplex that’s own free and clear (no banks/mortgage) by a older lady who may be open to me doing a Seller Finance Deal for a duplex where I may be able to do a Buy-Hold. The house is ready to be moved in, however I would want to do some cosmetics work if I purchase the property. She currently have tenants which are bad tenants that she is having removed this month. She also have another property that I may do a similar deal. ARV=$95k

    Do you believe I would be better off doing a seller finance or private money deal knowing that I don’t have any money to put down on the deal? I already know that with seller finance I can structure the deal in anyway that works for the both of us. (in addition I’ll be getting my Real Estate License this month which creates more options).

    Love to hear your thoughts………..

    • Daniil Kleyman

      Private lenders are a lot less likely to care about your credit score than any other type of funding. Read up and get a clear understanding of private money here please:

      Rehab Valuator allows you to create funding proposals for private lenders, but you will need to find them yourself! Again, the blog post above talks about some ways to locate them

  5. Bob May

    Hey Daniel…. Happy New Year!
    Just wanted to thank you for your continuing giving to the investing world. Anyone who does not appreciate what you do doesn’t belong in this business. I need to utilize this tool more than I have (think: NY resolution!). Thanks again for this focus and can’t wait for what you have up next.

    • Daniil Kleyman

      Appreciate the kind words, Bob! And definitely hope you start using the software more. As you can see, it’s a pretty powerful tool to have in your arsenal! 🙂

  6. Does the Rehab Valuator allow for renaming line items. Not their function. I am a builder so I want to do some minor tweaks, like deleting the word “rehab” and substituting terms like “hard costs”, “soft costs”, etc., and possibly adding some line items.

    • Daniil Kleyman

      Bruce. Right now, you can toggle between “Rehab” and “Construction” at the bottom of the input screen and that changes the language in all the reports.

      The detailed Rehab Budget is pretty customizable as well. In our next release it’ll be even more customizable. Check out these videos for a list of recent updates we’ve made to the software:

  7. Merrill Thomas

    Daniil, smooth presentation. First time I presented it, it might have been too simple for the mortgage originator that I spoke with. I am going to “back up 5 yards and punt”, find another way to present it. Possibly, find another way to “present the entire package” I will reach out for you shortly. I have (3) three deals pending, that would net $225k. That sounds like a nice way to start the New Year off.

    • Daniil Kleyman

      $225 net is definitely a good way to start the year!

  8. Sahirah Ross

    Excellent strategy on paying the lender with their money. Can this strategy be used even if they don’t agree with points upfront and lower interest? When we’re at the closing table do we have to tell the escrow officer that our down payment is coming from the buyers money? Wouldn’t we be required to deposit earnest money before the lender wire the funds?

    • Daniil Kleyman

      The point of this whole tutorial is to get you to think creatively about deal structures. Present multiple options to your lenders/partners. As for the closing table, you’re only responsible for bringing to the closing in cash what the HUD requires

  9. Dear Daniil I,am really very thankfull to your initiative of training that you rendered to me. but I,am expecting yielding and hervesting soon ,but when? and how?.
    matur makoi

    • Daniil Kleyman

      I have absolutely no clue what you’re asking me here. I am only approving this comment because of the hilarity of bad english here

  10. I’ve used the strategy of presenting options to sellers when making Subject To offers. I can easily see why multiple options for Private Lenders would definitely work very well. I will add this strategy for my Private Lenders…effective today.

    • Daniil Kleyman

      Exactly! The “illusion of choice” strategy works in many different situations!

  11. Edward H Stone

    I thought this video was very interesting. I have yet to use the Rehab Valuator since we are still trying to find our first deal but I’m sure it will be very valuable in time.

    • Daniil Kleyman

      Learn to use the software before you have a deal to look at, that way you’re ready. Same principle applies to finding money. You should be lining up financing before you ever have a deal to fund, that way you’re not scrambling to find $ last minute

  12. Amos Goodman

    That’s an excellent presentation Daniil!

    • Daniil Kleyman

      Thanks, Amos!

  13. Daniil,

    As always great info! I haven’t had to raise money yet, but we are planning on getting into larger multi-family projects where we will need to raise money and your info is always useful. As always thanks a ton! Fingers crossed this deal on N 35th & Glenwood that I partnered with Chris Johnson on is a success. I need to get involved in your inner circle “mentoring” this year. Can you remind me where I go to visit that site and get involved.

    All the best in 2018 – Troy Kingsbury

  14. Eleanor Wynter

    Thanks for this super great insight in structuring private money. I am unclear about requesting the rehab money at closing if the rehab money is being offered in draws. I thought that there are specific rehab actions that has to be accomplished before you can actually get the money if the money is being offered in draws. Please explain that section again. Thanks so much

    • Daniil Kleyman

      Hi Eleanor. With private lenders, you have the ability to request all rehab money at closing. This obviously requires trust on their part and as a lender, I would usually not do that myself. But in a situation where it’s a small rehab or I explicitly trust the borrower, then I’d fund rehab money at closing.

  15. Jay

    I enjoy this presentation Danill, you made it a lot more clear for me plus the Ninja Tips are great thank you for what you do to help all investors. Stay well Be ssafe Happy New Years lol

    • Daniil Kleyman

      Appreciate the feedback, Jay!

  16. Chuck Knight

    Very useful. Thanks

    • JacobC


  17. Luis Rivera

    How does the lender secure their loan in the case of a lender that is working with you for the first time? Do they get first position on the property?

    • Daniil Kleyman

      Hi Luis. First lien is how it’s usually done.

  18. Vernell D. Makell

    All information that I have been able to take the time to sat down and view has been more than helpful. It”s amazing that all of a sudden, everything clicks now. Thank you for your continued help.

    • JacobC

      Awesome! Glad to be of service.

  19. Daniil,
    Thank you, You have provided great examples of the real advantages Rehab Valuator Premium software. I look forward to using this content for my next deal.

  20. TW Williams


  21. Tom

    I wish you could see the smile on my face. REHAB VALUATOR IS A GAME CHANGER IN MY LIFE. GOD BLESS YOU AND YOURS!!!!!!!!!

    • Dylan Hampson

      Hi Tom,

      We are so happy that you are loving the software. Please reach out if you need assistance with anything!!

  22. Jim

    Thanks I’m starting to understand a more and more with everything. Thanks

    • Daniil Kleyman

      Glad to hear it, Jim. Reach out if you have any questions!