Case Studies

E. How To Structure Private Money Deals to Get Lenders to Chase YOU! -

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Hey, Daniil Kleyman here, and I wanted to put together this case study and tutorial for you guys on the subject of structuring private money deals for a couple of reasons. If you’re watching this then you’re either one of our 15000 plus subscribers and software clients, or you’ve found us through Facebook, LinkedIn, or another channel, maybe YouTube. But no matter how you found us, if you’re watching it then you’re most likely a real estate investor, and in that case I will bet anything that the subject of finding money for your deals is almost always the most pressing subject on your mind. If only you could find more money, you could do more deals, grow your wealth quicker, whether you’re building your portfolio, or you’re buying and flipping, whatever.

So, I’m going to show you two things in this video. One will be a few typical ways to structure your deals with your lender in a way that fits both your and your lender’s goals. And two, I will show you an easy way to present your deals to your lenders, that will really make you stand out from your local competitors. And it will make you look like you really know what the hell you’re doing in front of your prospective lenders as well, and that’s going to help you raise more money, unquestionably.

So watch this whole video, it’s not long. Don’t skip forward, and take notes. Information is only valuable if it’s applied and executed properly, and to those of you that will go and implement this, it will be very worthwhile content. This is the kind of content that all the real estate gurus out there are charging money for, hand over fist. But as luck would have it for you, I am not a guru, so I don’t charge for information. I buy real estate and make software. Oh, crap, I don’t even charge for software 90% of the time. If you’ve downloaded one of our free programs, then you know what I’m talking about. I’ve really got to reexamine my business model.

But anyway, this is called Private Money Structuring: How to structure your deals to get private money lenders chasing you! And the nature of private money is that it is incredibly flexible. You can literally structure an agreement between you and the private lender a thousand different ways. So this is one of the many reasons why private money is generally more attractive than bank loans, or any other form of financing for that matter. And I can’t possibly cover all of the possible ways you can structure private money deals, so I will just go over two or three of the most common ones. And one of these will be very powerful, and if executed successfully, will make private lenders come back to you time after time, and refer all of their rich friends to you as well. So stay tuned.

But let’s go over a few basics, first. Primary types of financing for residential real estate. Residential investment real estate. There is bank financing, there is hard money lenders, and there’s private money lenders. So when it comes to bank financing, there is obviously the conventional lenders, Fannie and Freddie. There is a limit of 10 mortgaged properties, very strict financing guidelines, requires ton of paperwork, good credit, 20, 30% down, background check, criminal check, drug testing, you have to give them your firstborn. You get the idea. Very hard to qualify these days, especially for investors.

I stopped dealing with conventional lenders ages ago. I can’t go to them anymore, because I have well over 10 mortgaged properties, and even if I could go to them, I probably still would not. You know, 30 year fixed rate financing is great, but just seeing my friends spend months trying to lock up a loan with conventional lenders, and pulling their hair out, is just… That’s enough for me.

So the second category of bank financing is there’s portfolio lenders. These are local community banks and credit unions. I deal a lot with these lenders, because quite frankly they are just way easier to deal with than the conventional lenders. These ae your local, little community banks that are mandated to lend in your area. There is very small hierarchy there, much quicker decision making, you can establish a relationship with a banker that, you know, usually the guys I deal with are the guys I’ll go out to breakfast and lunch with, they’re the same guys that can make decisions with my loans. They’re usually given free reign to make decisions on loans up to a certain limit before they have to take it to a credit committee. Usually it will be 200000, 500000, a million dollars.

So these guys, if they understand your business, they understand what it is you’re doing, they can make decisions on your loans very quickly. There are far less restrictions, because loans are generally kept in-house. That’s why they’re called portfolio lenders. Instead of having their loans have to fit Fannie or Freddie guidelines, because they’re going to sell these loans into the secondary market, they kept these loans in their portfolio and service them. This is how lending used to be 40 years ago. If you went to your local bank, when they lent you the money, they took the time to really underwrite the loan properly, because they knew they were going to keep this loan in-house for 20, 30 years, and they’d better make the correct decision and really get to know you, and make a good loan. Because they weren’t just going to sell this loan off to Wall Street and call it a day.

The downside to dealing with local portfolio lenders is, you still must qualify based on income, based on your credit, they will look at your global cash flow, and global balance sheet. So if you’re buying property, they will look at your entire portfolio, and you have to have solid income, and decent credit. Now, that’s not to say that you can’t team up with a credit partner, I know a lot of people doing that. You find a credit partner, if you don’t have a good job, you find a credit partner that will go in the mortgage with you, that has good income. But you still have to do a good amount of paperwork, and a good amount of qualifying in order to get a loan from a local portfolio lender.

Now, these are also, they’re really classified as commercial lenders, so you’re not going to get the 30 year fixed rate, low interest rate mortgage from these guys. They’re smarter than Fannie Mae or Freddie Mac. That’s why they’re still, a lot of them are still in business and doing well. They don’t want long-term, fixed rate, interest rate exposure. So typical loan you will get from these guys will be, you’ll carry a short-term call. Three, five, 10 years, or it will be an ARM. Now, most of my loans from these local banks are five year ARMs. I’m looking at probably three or four million dollars worth of loans resetting in, starting in three years. And so there is definitely a downside in dealing with commercial lenders.

Then, you’ve got hard money. I always have a running joke that you can go to a hard money lender, but they will rip your face off. They’re very expensive. Loans you can get from then are only going to be short-term, under 12 months, typically you’ll pay four to eight points up front, or on the backend. Points, for those of you that don’t know what that means, that just means if you take out a loan for $100000 from a hard money lender, they will charge you $4000 to $8000 flat on the loan, either paid up front at closing, or in the backend when you repay the loan, and on top of that they’ll charge you 12 to 16% interest rates. So you’re looking at anywhere from 15 to 20% annualized, you know, if you take out that loan for a year, your cost of money will be anywhere from 15 to 20%, typically. That’s expensive. You’d better have an amazing looking deal in order to be able to pay that kind of money for money.

The good thing about hard money lenders is, they don’t care typically about your credit, about your income, about your portfolio, as long as the deal is very strong. Because they know that they can actually make more money on the deal by taking it away from you. So you’d better have a very assured exit strategy in under 12 months, and a very solid deal, before taking out hard money. So if you’re rehabbing and flipping, you’d better be damn well sure you’re going to be able to exit out of this deal in the timeframe that you agree with your hard money lender.

And then there’s private money, borrowing from individuals. That’s really what private money is, you know, it’s not a complicated subject in and of itself. Private money is just borrowing from individuals. There are very few regulations, documentation requirements are up to the lender, and usually there is very little, the terms are incredibly flexible, it’s whatever you and your lender negotiate. There are typically no loan to value limits, again, it depends on what you and your lender negotiate, et cetera, et cetera. So, for example, if you want to buy, rehab, and flip a house, here are your options. And, other than obviously doing it with cash, here are your three most common options.

One, you can go to a local community bank or credit union and you can get a construction loan. You will need, again, to qualify typically based on income, credit, assets, et cetera. You’ll pay one to two points, and these days, I’m seeing interest rates of five to 8%. You’ll have a six to 12 month term on your construction loan. And then typically, most of these community banks will either call them or roll them over into what’s called a mini-perm, which means that your loan just rolls over into a 20 year amortized loan, with a three year call, for example. And all of these community banks… there’s so many of them… all of them are different. I suggest reach out to local ones in your area, get to know them.

Hard money lender. If the deal is strong, you don’t need to have good credit, income, or assets. You can get a loan based purely on the deal, but again, very expensive money and you must be able to rehab and sell the house, or rehab and refinance out of that hard money loan, under the terms specified by your hard money lender. Six to 12 months. Or, they’ll try to take the house back from you, or I’ve seen also clauses where after six or nine months if you haven’t repaid the loan, your interest rate jumps from 12 or 14% to something ridiculous like 25 or 30%. And I don’t know what the usury laws are these days, and if that’s even legal, but that’s what I’ve seen. So it’s incredibly expensive money from the get go, and then if you don’t repay that loan on time it gets even more expensive.

Or, you can get a private money real estate loan. Again, a private money loan is simply a loan made by one individual to another, usually backed by real estate. The terms between you and your private lender are completely up to you. So, in a typical private money transaction, you, the borrower, receive a loan for X amount from private lender in exchange for… and again, this is typically, it’s whatever you negotiate. But in the typical deal, you’ll pay them a monthly interest payment based on X%, you’ll give them a deed of trust or a mortgage on the property, depending on your state it’s going to be called a deed of trust or a mortgage, and you’ll give them a promissory note for the amount of the loan, promising to repay the loan after the agreed term. And I’ve seen private money transactions without the promissory note, again, it’s very flexible.

So in reality, you always want to keep things as simple as possible when structuring deals. So let me show you an example, and I’m going to use our Rehab Valuator software as an example to show you how to structure these deals, whether you use our software or another tool is really up to you, but I definitely suggest you use something, because it will make your life a lot easier. So this will be our example deal, this will be a rehab and flip deal, your purchase price will be $45000, required repairs will be $20000, closing/holding costs around $3300, and your projected resale price is $100000. So, pretty good deal, pretty standard, your cost basis is right below 70% of your after repair value. Now, you just need to find financing for it.

So we’ll switch over to Rehab Valuator, and I’ll show you the easiest way to structure this deal. Okay. So this is, if you haven’t seen this software already, it’s very simple. This is the input interface of the software, your purchase price goes here, $45000. Closing costs, holding costs, and we’ve entered our detailed rehab budget here, and it comes out to right at $20000, and then you switch to all cash option. Again, the easiest way to do this deal would be if you were sitting on a good chunk of cash, then you just do it with cash. You don’t have to pay for financing. I do a lot of my smaller deals with cash, but not everybody’s got the cash to do the deals.

So let’s say you want to go, and you want to get this whole thing financed, because it’s a strong deal. So you switch this to financing, and then you have an option here whether you want to finance it based on the after repair value, or the cost. So you’re going to say, “I want to get my entire cost of this project financed,” so you select cost here, 100%, and now with private lenders… With conventional lenders, with portfolio lenders, you’re often going to have to pay points. So origination discount points for a loan, you could have one, you could have two points, usually with private lenders you’re not going to be paying them points. So we’ll put zero here, and you’re not really going to be paying closing costs to the lender, either, so we’ll leave that at zero as well.

Now, you just have to decide what interest rate do I want to offer to a private lender? I know a lot of people and I finance deals myself at six or seven percentages rate. There is a lot of people out there that are sitting on cash, and that cash is not earning them more than 1%, and they will be very happy to start earning six, seven, 8% on deals, on money backed by real estate, backed by real property. Backed by a hard asset. So let’s just say you find a private lender, or you already have one, and they’re happy to make an 8% interest rate.

Now, the other thing that you have an option to negotiate with your private lender is, “Do I make you monthly interest payments during the rehab project, during the renovation phase, and while my property’s in the market, or can I just pay you on the backend, when I sell the… you know. I’m not going to make you interest payments for the next six months, and when I sell the deal, all that interest will accrue, and will be included in the amount when I repay the loan to you.” So, the simplest way to do this, obviously you’re going to make them an interest payment every month, but you can click this, and I’ll show you what this looks like, and you can say no.

Obviously, the cash required, and you can see here in the software, if you’re making interest payments, your cash required over the life of the project is $5300. So we always assume that your closing costs when you purchased the deal and your holding costs will come out of pocket. You could obviously negotiate to have closing costs and holding costs be paid by the lender as well, but for now, we’ll assume that that money is coming out of your pocket, but 100% of the purchase, and 100% of the rehab budget is coming from your private lender. But you can see, if you’re making interest payments during the rehab phase, and we’re assuming it’s going to take you two months to renovate, and three months to sell, your cash required is $5300. If you say, “I’m not going to pay you until I resell the deal, until I sell this house to a homeowner,” your cash required goes to $3300, which is just your closing and your holding costs.

So now, you can immediately see that you’re going to resell this house. Your cost basis, including your financing costs, will be 70% of the after repair value. Your projected resale price will be $100000. You’re assuming you’re going to pay 7% in closing costs when you sell the property, so 6% commission, and 1% in minor concessions or title work that you have to have the deed prepared when you sell the property. So we’ll assume 7% in closing costs when you sell the project. So here you can see you’re going to make 22.6 thousand dollars on the flip, and because you’ve put in so little cash into the deal, only $3300, your return on your cash investment is freaking astronomical.

So the cool thing about this software, and obviously I’m partial, is now that you’ve got this deal and you want to actually present this to your private lender, here’s what you do. You go view reports, private lender funding request. And you go here, you upload a couple of pictures, it’s very simple, and you can type in the description of the project here, and notes about some of the work required. And then you just create a one page marketing sheet out of this, and this is what it looks like. Right there. And obviously, let me go back and I’m going to change this headline, because your private lender is not making a 10% return, so let’s see. Okay. Opportunity to earn an 8% secured return. So now we’ll go, and I’ll show you what this looks like. Boom. You can print this out, or you can just make a PDF document out of this, and send this to private lenders that you already have a relationship with.

And it’s very important that you don’t blast these out to people you don’t know, because there are particular SEC regulations that prevent you from sending specific deal materials to people that you have never had contact with, offering them a specific rate of return. So you want to send these to people you already have a relationship with, or somebody that you’ve already met, and you’ve already kind of broached the subject of real estate with. But basically, you’re showing them right here very quickly, property information, your contact information, after repair value of the deal, purchase price, rehab costs. This is the total loan amount, and this loan amount will be your purchase price, plus your rehab cost, plus the interest rate that you’re not paying them during the project that you will pay them on the backend.

So look, you’re showing immediately your private lender, “Look, I’m only looking to borrow 67% of the value of the property after I renovate it. It’s a very low loan to value by conventional lending standards. It’s going to take me five months to repay you, and I’m offering you an 8% rate of return.” And here is the actual amount of money that your private lender will make over the course of five months, and their annualized rates of return. And this takes about a second to put together. And the other cool thing you can do with this software is, you can actually go and click full presentation with private lender, and now you’ve got a five page presentation that again, takes a few seconds to put together. You’ve got your cover page, and you could put your logo here. You’ve got your one page marketing summary.

Here, you’ve got the cash flow report, right, so you’re showing your private lender exactly how the deal will look from their perspective. You’re communicating all the numbers very clearly. This makes all the difference, because there’s no more confusion. You go, “Look Mr. Private Lender, you’re funding $45000, which is the purchase price at closing. Then you’re going to fund me two additional rehab draws, totalling $20000. This is how much interest you’re going to earn on this money, and it’s going to be deferred until closing. I settle the deal in month five, and you get repaid $67000, and these are your rates of return.” So you’re spelling out the deal very clearly, and obviously this is just your projection, you’re not guaranteeing them this is what’s going to happen, but this is your best case scenario.

And then you’ve got a comps report. You’re showing, “Look, I’m telling you that I’m going to sell this house for $100000, well guess what? Here are the recent comps for similar properties in my market.” So you’re showing your private lender, “I’m not just making up this $100000 number, similar houses are selling, and they’re selling quickly, and I’ll be able to do the same.” This just goes further to establish your credibility, and essentially back up the numbers that you’re providing to your potential private lender. And then you can include a page with some additional pictures here. And that’s it, and you print this out, or you very easily create a PDF document out of this, if you hit print, select a PDF writer, that’s it, it creates a PDF presentation for you.

It’s going to take a second, a box is going to pop up asking where you want to save the PDF document, you give it a name, and then you just include it as an attachment in your email. So this is the very simplest way, the most common way to structure a private money deal, where you pay your private lender just a set interest rate on their money. So we’ll call this deal structure method number one debt only, or I just like to call it straight interest rate. You’re simply getting into a debt arrangement with your private lender, you’re borrowing money from them, promising to repay it at a certain interest rate, after a certain period of time.

So here’s what this deal looks like for everyone. If we go to project summary, so okay. You’re buying for 45 grand, rehabbing for 20, these are your holding and closing costs, this is what financing costs you, you’re paying about $2100 in interest. Here’s your total cost basis, you’re financing a big chunk of that. This is how much cash you have to commit to the deal. Your projected resell price, cost of sale. So you’re making 22.6 thousand dollars on the flip, and if we go down here, these are your financing costs. $2100, out of that, interest on original money, which is the purchase price, and then interest on your rehab draws is another $560. So there you go, a very clear breakdown of this deal, private lender make a good rate of return, and you make a very nice chunk of cash on the sale.

Now, here’s another cool thing that I like to do. You probably have a lot of… or at least a few friends, family members, acquaintances, that have home equity lines of credit that are not being used. What I’ve often done is, if I find somebody that’s got let’s say a $50000 line of credit on their home, the interest rate that they have to pay, especially these days on that line of credit is very low. 4%, 3%, 4%. So I will tell them, “Hey look, you’ve got this line of credit that’s not being tapped, let me borrow that money.” And typically they can just literally write you a check out of their home equity line of credit. You say, “Look, let me borrow this money for six months, or a year, I will pay you five or six points up front. So you write me a check for $50000, I’ll write you a check for $3000 right back, and I will make monthly interest payments on your line of credit until I repay it in full.”

So this is what that would look like. You say, “I will pay you six points, and I’m going to pay it up front. And I will pay off the interest on this line of credit every single month.” And so what happens is, you’ve got somebody that’s sitting on the line of credit that’s not being used. Now, you’re able to use that line of credit, they make a very nice chunk of cash up front, look at this. Your private lender, on this particular deal, makes… they get a check for $3900 from you right away. As soon as they lend you this money. So they’re making four grand that normally they wouldn’t have made, you in turn are financing the entire cost of your renovation, and acquisition, your cash out of pocket has to be a little bit higher, and your total financing costs go up, but again, this is a great way to let everybody win.

Your private lender, in effect, is using money that’s not theirs to make money. I mean, think about it. They’re taking money from their bank, and arbitraging it to you. They’re making almost four grand up front in cash, and you’re repaying their interest on their equity line of credit while you’re doing the project. So if you were to present this to your lender, again, let’s go back to the marketing sheet. Right, same thing? You’re saying, “Look, write me a check for $65000, I will pay 4% interest on this money, and I will also pay you $3900 in points.” So you still make, after all is said and done, you still make almost 20 grand on this deal, your private lender is happy because they’ve taken somebody else’s money and lent it to you, and made four grand. Everybody wins. This is a very slick way to borrow money from people that don’t necessarily have cash.

If you get anything out of this whole presentation, this is one tip that’s worth tens of thousands of dollars. Hundreds of thousands of dollars. I’ve raised hundreds of thousands of dollars from this method. Find somebody with home equity lines of credit that are not being used, right. These are not your typical private lenders. These are people that may not necessarily have cash, but you can borrow from them. You can utilize their lines of credit. And this is very powerful, and the way you make it worthwhile to them is by offering them these points up front. I mean, to allow these people making four grand, just by writing you a check? It’s huge. It’s powerful. So that’s one tip that is kind of unconventional.

So we’ll call deal structure method number two debt only with points, or borrow from people who don’t have money. Seriously, write this down. It’s pretty slick. All right, so let’s review how these deals look in terms of numbers. So, structuring method number one is where we just pay the simple interest rate to the private lender. All this is the same. Buy for 45, rehab for 20, closing/holding costs, your projected resale price is $100000. You earn 22 and a half thousand dollars on the deal, your private lender makes two grand, annualized cash and cash return to your private lender is about 7.6%, which is pretty nice. A lot of people will be very happy earning that kind of return backed by real estate. Your cash required for the life of the project is $3300 for your closing and holding costs, and even that can be negotiated into the loan.

Again, private money, you can negotiate anything. You want to give your car as security for the loan instead of real estate, I mean you can literally negotiate anything. Structuring method number two, same thing. Numbers are the same here, you earn a little bit less, close to $20000 on the deal, because you have to pay up front points to your lender to use their equity line. But, your private lender makes $3900, annualized cash and cash return is almost double to your private lender. 14.4%, and this isn’t even on their money. Again, remember what I said. Your private lender writes you a check out of their equity line, so they’re making a 14.4 cash and cash return, but it’s not even on their cash, it’s on their bank’s money. This is the beauty of this strategy.

Your cash required for the project is higher, $8200, but what if I showed you a way to go back to only needing three grand for this project, or zero, if you can negotiate it into the loan, but giving your private lender almost a double rate of return than this? In the high 20s? Check this out. Structuring method number three. You make a little bit less, $17000 on the deal. Your private lender makes a whopping 7.3 thousand, which is an annualized cash and cash return of 26.5%. And you only need three grand for the deal, or zero if you can get your lender to finance the closing and the holding costs. Do you think if you can produce this sort of rate of return for your private lenders, do you think they’ll come back to lend to you over and over again? Will they refer you to all of their friends, if you can consistently deliver that kind of returns?

I mean look, again, don’t get me wrong. If you can get away with just paying your private lender six, seven, 8% interest rate, and you’ve got plenty of money, then I’m not advocating doing this, necessarily. But if you’re having trouble raising private money, but you have access to good deals that you can execute, or if you’re dealing with people who want a higher rate of return on their cash in order to lend it to you, then let’s look at the final structuring method that I’m going to show you. We’re going to call debt with equity, or alternatively, it can be just equity only. And I’ll show you how to do it both ways.

Okay, so this is how our previous scenario looked, and before I go any further, if you’re not paying careful attention to this, then you’re wasting your time. The devil is in the details, and the details are the numbers. And unless you’re giving this video your full attention, just turn it off right now, you’re really wasting your time. You’re not going to get anything out of this, it’s really important that you understand the numbers and how the numbers break down. So, turn off Facebook, turn off football or whatever else it is you’re watching, and give this your fullest attention, we’re almost done.

So, in deal structuring scenario two, we looked at paying 6% origination points to the private lender to use their equity line, and a 4% interest rate to repay their line of credit. But, as you can see, you need… and because you’re making these payments every month… you need almost eight grand to do this deal. Check this out. You go back to paying zero points, and you say, “Hey, private lender,” and now you’re dealing with somebody that’s got cash to lend. Before, you were offering them 8%, let’s say, “Hey, what if I only pay you 6% interest rate, and we’ll defer these payments until the end of the project, but when I’m done doing this deal, and I flip it, I’m going to give you 25%… just as an example… 25% of my flip profits. And so you hit this little drop down box here, and you say split backend profits with lender, you say yes.

And by the way, before we go any further, this software lets you apply all of this, not just to deals that you’re going to flip, but my business strategy usually is to purchase, rehab, and then refinance with local community banks into a permanent loan, and then hold the deal. So just as a head’s up, you can do this analysis for deals that you’re going to hold, as well. But let’s not get distracted.

So, basically what you’re saying is, “I’m going to give you equity in the deal. You’re going to lend me money, and I’m going to share the backend profits with you.” And if we go to our private funding request, this is what it looks like. And we’ll… So, cover page, and this is the funding request, look. You’re saying, again, “I’m only borrowing 67% of the value of the property once renovations are finished.” So the thing to always sell your private lenders is, if you want to think of the worst case scenario, “Let’s say I stop making payments to you, and you have to foreclose on me. Well guess what? You’re going to take back a property that’s going to be worth $100000, and you’re only owed $66000. You’re actually going to make more money in the worst case scenario, you’re going to make more money by taking the property back from me.”

So you’re borrowing 67% of the value, again, five month timeline, and you’re saying, “Look, interest rate offered to lender, 6%, with a 25% profit split.” And the way our software works is if you, if profit split is disabled, this never even comes up in the conversation. It’s blanked out. And look at this, you’re showing your lender, “You’re going to make interest income of a grand and a half, but you’re going to get another $6000 almost as a profit split, so your total income will be $7300. And here’s your cash and cash return, and the internal rate of return.” I mean this is huge, and you’re still making great money on this flip. And again, if you can get away with paying your private lender six, seven, 8% flat, great. But sometimes you can’t find the money at those interest rates. Sometimes you can’t get a lender excited about coming to you, or maybe taking a chance on you if you’ve never done a deal with them.

So offering them a profit split is a great way to bump up this return big time, but the beauty of this strategy is, they’re only getting the profit split if you make a profit. You know, if we go back here, they’re sharing in the upside with you. If we go back here and we say, “Oh, man, I’ve got to drop the price to $90000,” well they’re getting less of an upside as well, right? So basically, their profit split is now only $3400. You’re making less, they’re making less. So this is what’s called debt with equity, because you’re borrowing money from them, but you’re also giving them equity in the deal by giving them upside. You could go just a pure equity rout, meaning they put up the money for you to do the deal, and you guys both own the deal, you’re not paying them interest rate on this money, and you’re going to split the profits 50/50.

Right, so here we’re going to say 50%, and we’re going to bump up the sale price back to $100000. So now, with the equity only rout, and splitting profits 50/50 with them, if you don’t make money on the deal, they don’t make a penny. You guys are both invested, so you, assuming you sell at $100000, you make $12000, and guess what? And your private lender makes $12000 as well. But look at the potential upside. With investing, the higher the risk, the higher the return. So your private lender now is taking a bigger risk by becoming your equity partner, but the potential return on their money is much higher, 45%.

So I tend to talk fast, if this didn’t make sense, rewind the video and watch it again. So again, these are just some of the typical ways in which you can structure your private money deals. I mean, again, the beauty of private money is that it’s flexible. It really just depends on your imagination and what you can negotiate with your private lender, and obviously you’ve got to be able to find out what the particular private lender you have in mind, what their goals are, and tailor your deal structure, ideally, to both fit your and their goals. And your ability to raise private money is going to boil down to one, being able to find the private lenders, and then being able to structure your deals with them correctly, and present your deals to them in an intelligent manner.

It’s obviously very important to establish credibility with your lenders, by showing them you understand how the deals work, you understand the numbers, you understand how much money you’re going to make on the deal, how much money they will make on the deal, and you understand your exit strategies, and you plan appropriately. So there is a couple of things that I’d like you to do if you’ve gotten value out of this video. One, right below the video there is a Facebook share button, as well as a Twitter share button, so I’d love for you to share this video with your friends on Facebook, your Twitter followers. Anybody that you think can use this information, we obviously would love to get this video into the hands of as many people as possible.

Number two is leave a comment at the bottom. If you have a question, if you have an opinion, if you have a success story about raising private money, if you want to share your own strategies for structuring deals, for finding private lenders, anything, leave a comment below. When all is said and done, this video is going to get watched by thousands and thousands of people. So we’ve got a pretty big community here, and if you want to tap into this community, this is where you do it. Leave a comment, leave a question, if you’re looking for private money, if you have private money to lend, you can leave your contact information, your website links, leave it all below in the comments section.

Number three is right below the Facebook share button, there is a link for a page with some related resources. One of these will obviously be the Rehab Valuator Premium software. If you don’t have it yet, and you’re raising private money, or you’re doing rehab deals, I obviously suggest, highly suggest, you get the software for what it can do for you and your business. It’s a freaking giveaway, it’s dirt cheap, it’s $97, it’s a one time fee, but obviously as I’ve shown you in this video, if you need a way to evaluate your deals, to structure your deals, and to present these deals to anyone, to banks, to private lenders, to wholesale buyers, this software makes it almost a no brainer. And finally, go out and raise some private money.

So that’s it, I appreciate you watching this, again, if you have questions, comments, leave it all below, and we’ll catch you later.

This is an all-content video about 3 different ways to structure your deals with private money investors for real estate.

In this video, I show you:

–          Breakdown of typical financing avenues for real estate deals

–          3 Ways to structure private money deals, with examples

–          A slick way to borrow money from people who don’t have money to lend

–          A way to structure private money deals that will have lenders chasing you

–          And much more


Get Rehab Valuator Here!




Comments (205 comments so far)

  1. Sounds like a solid way to structure deals looking forward to see how it works.

  2. Charles

    Awesome content!!! Thanks!


    Danill, do you have LP or other types of partnership contracts as security for the lender? Specifically:
    Limited Parntership Contracts that secure the lenders investment with you, without violating Reg D of the Security Act.
    Please let me know: Frank Garymartin at “​t” 619-752-2266.

  4. How do you get a person to get going on their 1st deal?? I’m still on the fence, fear is a good word for where my head is at!

    • Daniil

      Chuck? Are you talking about how do you get someone to lend you money for the first time? Start with people who know and trust you. That will be the easiest source of money by far!

  5. A. Whiteside

    This is one of the most useful and easy to follow videos that I have seen yet. Great job!

  6. Great video Danil, do you know on average the time it would take to refinance “with portfolio lender” on a property we want to hold and cash out the private lender.

    Thank You

    • Daniil

      Thomas – portfolio lenders typically move quick. None of my loans ever take more than 30 days to close from the time I send the deals to my bankers. There are ususally no seasoning requirements for cash-out refis either.

  7. Chris Genard

    Great tutorial as always! I love the new PM upgrade! This will be very useful. Thanks

  8. Jerome

    Daniil: Thank you for this great Video ,this is awesome content that is investors material for all ,beginners,seasoned and career investors ,You are a great man for doing this daniil ,thanks

  9. Marcos Draco

    Daniil—-I’m really taking advantage of all the infor you are presenting for a beginner. I have been educating myself for a long time (2 yrs) .I drive the drop boxes to many houses for rehab, foreclosures or renter vacancies and realized what a goldmine of opportunities that were right in front of me. Over time I’ve met private real estate investors, investor real estate contractors, real estate agents willing to work with me, they told me what title companies that work with investors the most. I just purchased your rehab valuator premium which I really like. A must for serious presentations. I’m trying to build a mentor relationship with someone( who I recently met while delivering drop box ) who will walk me through my first couple of deals for a % of the deal .I really paid attention to your video on structuring deals and how to get the funding. It was amazing!! What you were pointing out!! Giving free information is not a bad business model Daniil, it actually enhances everybody’s worth over time and isn’t it all about financial security and what it can for you and others whether it’s affording to live life well and giving to others less fortunate.

  10. Gary Carter

    Daniil thanks – as usual your info is priceless..

  11. Great information, I have the software and use it in my business. My buyers appreciate it because
    they don’t have to do all the work and can see all they need to make an well informed decision.

  12. Marcos Draco

    Daniil, I watched the video again. And it’s beautiful! You talk fast but I think fast but because I’ve studied real estate for so long it’s easy for me to understand. It’s a perfect strategy to bring private money lenders time and time again ! I don’t mind parting with some of my profits because without them I’m not even in the game. Now, my question is this ” can I advertise in the paper or craigslist for private lenders that have equity just sitting around earning next to nothing interest” telling them their money will be backed by hard assets ” ???? All people want to make more money esp. in these times with the cost of everything going up with no end in sight. In my lifetime as a kid gas was .25 cents a gallon and cigs were 25 or 35 cents a pack and bread 20 cents a loaf. 40-50 yrs ago.

    • Daniil

      BE VERY CAREFUL ABOUT GENERAL SOLICITATION FOR PRIVATE LENDERS! There are very specific SEC rules that govern this and you can get into a lot of trouble. I’m going to post a few links on the “Additional Resources” page about this.

    • Daniil

      Here’s a good thread to check out about what you can and can’t do in terms of soliciting private money:

      Bottom line: find a decent securities lawyer in your state and seek advice before you do any general advertising. Soliciting loans generally has less rules than seeking investors, but you still want to be aware of all the laws, SEC and state-specific before you do any general solicitation.

  13. Daniil, This is so awesome! Great Video, I love the Debt with Equity or Equity only feature of the software. Thanks!

  14. Daniil: Thanks so much for the valuable hints on structuring deals. I find all of your suggestions very helpful. As soon as I can afford it I am going to buy the “Premium” version.

  15. Nova

    Invaluable information for a beginner like myself. Thanks Daniil!!!

  16. George Lekas


    As always, great information, presented professionally yet so that anyone can understand and follow it. One issue, though. In your answer to Thomas Weir, you seem to indicate that finding non-seasoned refi funding is easy! That’s not the case in my neck of the woods! If I could locate such a bank here in Wisconsin, I’d have more deals going than you could imagine! Anyway, many thanks for all you do, and please keep it up!

    • Daniil

      George – I can almost guarantee you have local community banks and credit unions in your area. Just do a little research – almost every area has these lenders and oftentimes they keep loans “in-house” and are ok doing cash-out refis with no seasoning. I have easily 8-10 banks in my town that do it.

  17. Bart Corrie

    Hey Danill, great material and very well presented. As you know I upgrated to Rehab Valuator Premium and it is worth way more than what I paid for the software.
    GREAT TOOL, quick and simple to create a professional presentation to your Private Lenders and rehabers etc. I love the fact that you can create a varitey of reports based on how you are structuring your deal and do it in a matter of seconds RVP puts you way ahead of your competion.

    Thanks again and I am looking forward to more great stuff from you.
    Bart of Nevada

    PS I just secured a new Private Lender that has over $1,000,000 to invest, their money is sitting in the bank and they are only getting 1,5%

    • Daniil

      Hey Bart- $1mm in private money is awesome! Nice work!

  18. Terrence

    Awesome info! How would you structure a deal when the private lender is only lending you the money for a down payment?

    • Daniil

      Terrence – in that case you would most likely be giving your private lender a 2nd lien on the property and your bank would get the 1st lien. If I’m lending for a down payment and getting a 2nd lien, I’d want a higher interest rate from you. Also, you need to make sure that your bank would be OK with there being a 2nd mortgage on the property. A lot of them don’t like that – a lot of them will want you to “put skin in the game”.

  19. james

    Great Presentation!
    I was slow about using this software but, you just won me over! Again Thanks, James

  20. Raul

    Daniil, Thanks for your response. I did know the SEC had laws seeking investors but I wasn’t sure on seeking funds for deals. I will definitely seek out a securities lawyer to see exactly what the rules are before I do anything. I’m a true believer in due diligence. Thanks again and I’ll keep in touch and let you know what I find out and pass it along. PS the site you gave me the link to is down for the moment. I’ll check it again soon to see what I can find out.

  21. Jessie

    Great content, thanks Danill!!

    Especially like method #2, very slick!


  22. JW


    Let me say a few things; first off, I’m glad that I purchased this software and which allows me to do both residential and commercial. This is quality FREE stuff that you’re sharing! You’ve made a presentation that addressed 1) How to address a no money involvement from investor (equity split), and 2) Math on the deals.

    Maybe the next learning session will look at how to address cost over runs and contingencies if you don’t sell.

    Thanks for the time an effort you put into this lesson.

  23. I really appreciated this video, Daniil. It was very clear and to the point. Your premium software, which I am still learning how to use, was an excellent vehicle for the example illustrations.

    The one thing I appreciated learning is that I’m not a beginner anymore! 🙂 Because of my experiences in working with private money, I completely understood everything you explained and have used most of the strategies you suggested. The tip about talking to people with HELOCs was a GREAT idea, though, that I hadn’t used before and was worth the time it took to listen to your video.

    Thanks for reaching out to the rest of us. You’re right, as rehabbers we are always looking for people who have money or access to money, who want their money to work harder for them. That’s what we do!

    Marti Castle Warr
    Plan Z Property Solutions, LLC
    Idaho Falls, ID

  24. LeddieO

    Hi Daniil,

    Thank you for this awesome information, that can enhance my presentation to raise that $$$ for
    all the unbelievable real estate deal out there… I’m looking for few PML out there, to partner with.
    If interested shoot me an email ( Thanks again for sharing Daniil.
    May God Bless You Always.

  25. Keith Nelson

    Investor seeking private lender offering points and interest. Loan amounts of $50,000 for purchase,

    rehab and sell of SFH’s 3 months or less. You are 1st position. Owner financing takes you out

    with a sale price of $90,000+. Location is Memphis TN.

    Email me with the subject; PRIVATE LENDER.

  26. Keep up the GREAT work D. Excellent job on your presentations. Love love’s everything about your rehabvaluator.

    Thanks and keep them coming,,,

  27. Bill Wiley

    Hey Daniil, as usual you not only provide a quality product well worth more than you are charging, but you continue to provide additional techniques and strategies to gain more value from its use. I own several different deal evaluation programs, however they r more difficult to simulate different what if scenarios. Not with yours, Thanks again. Keep up the good work!

  28. Daniil,

    you have done it again, this is just what I need to rasie capital for my business, and you have done all the work, I just complete the steps you have layed out and the money will roll in….the only question I have is I already have RVPreminum but I dont have the correct codes you ask for what do I do?

    Bob Ross

    • Daniil

      Thanks, Bob! If you need to activate the Premium software again just send an email to support [at] with the computer code shown in the activation window and someone will get back to you.

  29. Larry

    Great presentation, content and value, a must for wholesalers,rehabbers,renters,retailers,and lenders. If the software is ever upgraded, will there ever be price for the upgrade? Daniil you have a winner!

  30. Hi Daniil, thanks for the video presentation. We know that you can work the numbers to each other advantage to make it work, however what is your method of selling the property within 90 days as indicated? This is key, and what happens if it is not sold?

    • Daniil

      Don – there is no guarantee you’ll sell, but you should always do a great renovation, price the property correctly (not too high), and pick locations and neighborhoods where there is demand. You can find data on “average days on market” for different areas and see whether other properties in the that area are selling quick or sitting on the market forever. Do your homework and be selective about your deals.

  31. love it, it has every thing that you can possibly think of, can’t thank you enough.

  32. Thanks that the first time some one really broke it down like that, I have the lite going to have to upgrade. I think that would help get more deals aprroved.


  33. Tom Pemberton

    Hi Daniil

    It’s quite refreshing to watch a video and not be constantly beating over the head with buy this or buy that. I have 20 years experience as a real estate broker, I alos flip houses usually 2/5 per year. The ” Gurus” out there are charging 995 for garbage, you charge $ nothing or 100.00. This product is worth’s in weight in gold and I will be buying it on monday. Keep up the good work

    • Daniil

      Thanks, Tom. We’ve been trying the keep the sales hype to a minimum. I get annoyed by that as well – everyone wanting to reach into your pocket before you even know what it is you’re buying. Appreciate your feedback and compliments!

  34. The hard money interest rate is going to eat up the ipfort, especially in this market where it can take months to sell. Can you make the payments if the house sits for 6 months?

  35. soundman

    Excellent presentation. Really shows the power of the software. Very informative!

  36. Mary Bennett


    See this is the type of information that investors need to know!! This is one of those pick me up BAM in your face and absolutely an AAH HAA squared moments!! It has me sold to purchase the upgrade as well as forward the email to other investors that i know.

    Also I have a proposal for you Dan. So I’m going to shoot you an email later on and run something by you that would help get this product out to the masses. It’s definitely a steal and Thanks a million!!!

  37. Kat

    Hey, Daniil—Awesome software for investors! Where’s the MAC version??? I need it! 😀

    • Daniil

      Hi Kat. Web-based version coming next spring!!

  38. Yasin

    I like your presentation!. Great techniques, I have tried same techniques for raising private money but no success. I am experienced investor i have successfully completed 37 single family, multifamily and commercial projects, I have access to lots of great deals in the greatest major metropolitan markets in the contry single family and multifamy but i am having difficult time finding good funding source for my deals. any sugesstions.?

  39. Danniil
    Great stuff as all ways. Knowledge is the key. Would love to talk to you some time. It has been a while.

    David Wagenius

  40. Like your video, I use the software for my deals in Houston, Texas. I’m always looking for private money.
    I do buy and hold, so if you want long term returns connect with me.


  41. It doesn’t matter if you are a seasoned pro constantly expanding your portfolio, a real estate agent assessing the value of a property, a developer who rehabs and resales, an investors or develops and maintains, a wholesaler constantly scouting potential deals for, buyers looking to make profits in real estate investing, or a beginner looking to get started RehabValuatorLite makes is the video, download the FREE SOFTWARE, start making profitable deals..its just that simple

  42. i loved your presentation but the sound was messed up i am not sure if it was you or me none the less i get it pretty much and got to get your software i also am looking to do my first deal , I have
    been able to find great deals in my area and watch them go by because i can not find financing partners, anyone interested and can help please contact me at my email
    i do find deals almost every night at least 4-10 deals i just like finding them it is easy for me, and with your software i can really present them to people and know what my return on the deal should be along with there’s thank you

  43. I will try the free version as I am more the lender than borrower but I saw the value in using other people money. As a a lender, I do not buy the idea that ARV is valid as a profit or forclosure statistic. I am more of a LTV person as it is difficult to suppose the future. I also like to see the borrower have skin in the game and want to be first lien on the property.

    You did not address these issues which I feel from experience – the base of private mone ( unless it is family, firends or an incredible deal). . In addition, If I were to lend on ARV. what security would the the borrow present – first lien or something different.

    • Daniil

      Hi Patricia. When you lend based on ARV, you can still have a first lien on the property. It’s no different in that regard than lending at an LTV

  44. fidel cano

    I find this information very interesting, thank you very much

  45. Hi Danill,
    Silvino Camacho here,Thanks for the class about private money, I thing it is very important to master all this stratergies very well. Thanks again.

  46. I like you a lot Daniil, You are the most honest Real Estate Investor out there. Keep the good work going, cause you truly make a difference in our Country. Your Webinars and Video are not only full of truly useful content, the teach investment discipline and longevity. I think you are totally awesome.


  47. Byron Henderson

    Once again You have delivered the goods sir, I appreciate your straight forward style, timely Immediately Applicable TakeAways, without a lot of Hype and selling the software speaks for itself, I really understand the value and usefulness of Your content rich training as well as the software, so I guess its time to start earning some Affiliate $$$$! You once told me ” Money would seek me out”. Thank You, Everyone needs Encouragement, however Your Words were Confirmation from The Universe to Me, thru You, To be Patient , work smarter, work my plan, plan my work & Success is INVEVITABLE! Byron

  48. Marilyn Bost

    I’m looking for private money for m y next rehab. Have completed and sold four rehabs in the past 12 months.

  49. David Wallace

    Excellent video, very informative even for a novice like myself. Thank you so much, look forward to future videos.

  50. Jannett Graham

    Hello Daniil , been with you for a while happy that you are still working on those deals. Thanks for sharing and having watched it for a 5th time – yeah, I’m a slow learner – I really understand it. Added to which I used the software to prepare a deal to raise private money. Your office offered to help me and held my hand..point is I found that by doing an actual deal on the software, that I understood the different scenarios a lot more.

    I am still looking for private lenders and will continue to learn from you how to do this the right way.

    Thank you Daniil and Jacob!

    • Jacob

      Thanks Jannett! Glad to hear it. It was a pleasure speaking with you the other day. We wish you all the best in your business dealings and please let us know if we can be of any more help. Disclaimer: The picture on the left is actually of Daniil, not of me. I haven’t look up how to change it. 🙂

  51. Awesome video! Very informative ! Looking for private money for vacation rentals in Myrtle Beach. 843-752-2450

  52. Ab

    Great software and Video. Keep up with the good work. Need private money/hard money lender.

  53. william

    This is the best software ever!!.I really do appreciate this program I am looking for resources funding private money or hard money if there is any suggestion out there to help me get started on my first deal financially it would be greatly appreciated. Again I must say that this software is the GREATEST EVER!!!! Want to do deals in Mi 7348299873

  54. If any of you are experienced 20 deals or more we fund in CA and AZ.

    Mark M. Garay, President
    Paladin Funding, Inc
    430 Ridge road
    Tiburon, CA 94920

    Tel: 415 399-0100
    Cell: 415 722-0100
    Fax: 415 399-1616

  55. Kosta

    Great THANK YOU Daniil. Outstanding and honest video training.
    Would you please share your thoughts as to how could one use the RV software for acquiring multifamily properties.
    To Your Continued Success.

    • Daniil

      Glad you liked it, Kosta! You can use Rehab Valuator for multi-fam the same way you’d use it for residential. I highly recommend watching the rest of our case studies here and if you have particular questions about using the software just email us at support at

  56. kelley

    Awesome, I loved it! Thank you for sharing your knowledge with all of us, and taking the time to show how to structure a deal. It seems like all the other big name investors want is in your back pocket to show you something, but not you, your for real. it seems all you want to do is help other people. your awesome!!! Please keep up the good work. thank you again.

    • Daniil

      You’re welcome, Kelley!

  57. Howdy Danill: Seems that I spoke with you several months ago, and something was missing with the free “Lite” software, and it wouldn’t work with_______?? I recall that you mentioned after the first of the year a new version would be out that addressed this problem.

    Sorry I am a old guy, and don’t remember exactly what feature the you were going to add, with th new version! I wish to enter this field, and your software would be a Godsend to help me get started.

    Many Thanks inn advance, Sincerely Tom Kelly

    • Daniil

      Hi Tom,

      I don’t remember off the top of my head but my guess would be that maybe you were missing the correct version of Excel? The new thing that we hoped to release the beginning of this year is the web-based version of Rehab Valuator. It has been delayed so we’re hoping to release it closer to the middle of this year. Thanks for thinking of us and stay in touch. The new web-based version should be AWESOME!

  58. Barbara Ducote-Puckett

    Thanks So Much for the Knowledge! Has been a huge help already!

  59. It make me Get motivated to get up a and do it.

  60. This system is a must. If you do rehab’s this proble the best system out their.

  61. lazester

    i would like to construct just one deal with you

  62. Sammy

    I have watched your video’s a number of times trying to convenience myself that this was just another one of those sites where all they wanted was your money and Leave you wondering what the hell did I just do! It took me about two weeks and I finally showed it to my wife and she agreed with me this is something that we need and for her to agree with me on this is like trying to sell ice to an Eskimo! We downloaded the free one and in 3 weeks when I vet paid we are diffently going to up grade. Its a no brainer!!!

    Thank you guys for opening our eyes! Now its going to be a Win Win for us!

    • Daniil

      Thanks for your great feedback, Sammy! We are definitely not one of those sites 🙂 Let us know if we can help in an way!

  63. Harry

    Thank you for the presentation/education. This is the first time I have heard you “TEACH”, I am so encouraged because I actually understood and can implement! MORE TEACHING PLEASE!!

  64. Kev

    In the 1st deal, the rehab costs are financed. How are those costs secured? For example, if I was to lend someone $67k on a property bought for $45k and the borrower walks, I lose bigtime.

    • Daniil

      Kev- you would not usually want to fund them the entire rehab budget upfront unless you really trust them. That’s why you have rehab draws!

  65. Omer Khan

    Daniel, is Rehab Valuator Premium software separate from your Bank Elemination Wealth Building software or Joint Venture software? Please clear my confusion. These soft wares are awesome and I’ve told my friends about them . Thank you.

    • Daniil

      Hi Omer. Yes, Rehab Valuator is totally separate and different from the Bank Elimination Blueprint.

  66. Kai

    When I viewed the video it had no audio. Very helpful information nonetheless.

    • Jacob

      Hi Kai. There can be a # of reasons that you don’t hear audio. If it’s still not working and you want some help troubleshooting please email us at

  67. Angie

    Thanks Daniil! Great review as I had forgotten some strategies. Love this software! Angie

  68. Javi


    Your video is superb for the rehabber seeking private money. However, as you’ve said before “flipping is just another job” How does the “buy and hold guy” get results? Also seems like if you’ve burned out your “warm market” of friends and family with all your other money-making opportunities you’re basically SWOL and acquiring pvt money.


    • Daniil


      If you want to buy and hold, then you need to watch this: – we show you how, in detail. And it’s not just about your friends and family. It’s about expanding your network and creating new relationships and opportunities.

  69. Great video Daniil! You always provide valuable easy to understand content, resources and training. Keep up the good work!

    • Daniil

      Thanks, Chris!

  70. Beverly Blair

    Really like all your products and how “down to earth” you are at teaching!!

    My question is Private Money and how it concerns SEC guidelines? Do you have any information or source on where/how we can get the information so we are in compliance?


    • Daniil

      We don’t have any material that teaches SEC rules – not something I want to advise people on. Educate yourself and if you’re soliciting for money, make sure you have a good SEC attorney to advise you and review your solicitation materials and contracts.

  71. Donna

    What happens if you got your deal from real estate agents? How you include them with your money structure?!

    • Jacob

      Hi Donna,

      Great questions! Generally speaking if Realtors are involved the seller is going to pay those fees. However, if you need to pay them yourself you would enter those in under “Closing Costs” in the Purchase Assumptions section. There is a separate item for closing costs when you go to sell the property under the exit strategy.

  72. Paul Wechsler

    Daniil is a very amazing person This Rehab Valuator is something that i will be using to to flip contacts and to raise money when needed.

    • Daniil

      Thanks, Paul!

  73. B. Nicholson

    Wow! Blew my mind….

  74. Ray

    Thanks great video on presentation of projects to potential private monies..
    Various options to work with Private Money investors.
    Also your software helps make the estimating and structuring the deal too.
    Lots of good points. Plus fast precise.
    I’m a premium owner, and have not used these techniques. But will now..
    Thanks Ray

  75. Loan Tran

    Love the software , it makes it easy to understand and for people like me who do not know how to put it in a nice easy to read presentation packet. Will be getting software !

  76. Bruce Rushing

    Great information. I am in the start up phase of finding deals and private money….I feel like this is a can’t miss way for me to structure deals and build my business for me & my family…..

  77. tess

    Hi Daniil,
    Amazing Presentation. Have a question though – Who supplies the paperwork for the private lender loan? Such as Deed of Trust/Mortgage Property, etc.


    • Jacob

      Hi Tess,

      If it’s a true private lender (as in they don’t lend money as their profession) then you will need to provide that paperwork. For premium buyers, we have quite a few of the things you’ll need in the bonuses area like sample private money contracts. Of course you should always have a qualified legal professional look over any documentation to make sure it meets local and state guidelines. If you have further questions feel free to email us at

  78. You make it sound so easy!! I am very interested in getting into real estate! I have been studying a lot for the past few months , I have gone to a few seminars. I have watched multiple webinars! I have purchased your software!! Now I just need partners!! I any money lenders are out there , I need a partner and I will work as hard as I can for you and me!!!

  79. Herb Mitchell

    I belong to a local real estate investment group. We have people I have worked with that convert their IRAs into a self directed IRA account and then use this money to lend to local rehabbers that they have developed relationships with. The yearly fees to set this up are minimal. The returns from these accounts are either tax deferred or tax exempt. Everyone wins!

    • Daniil

      Sounds like a great business model!

  80. Ken Shoemaker

    Awesome information! Thank You!!

    • Daniil

      You’re welcome, Ken!

  81. Alfonso

    Great video, can I find lenders to build houses, I only rent new to 5 year homes. I now need money to build new homes all at 60% loan to value. I am sell all my 5 year rentals and would like to replace my income before I sell the old home.

    • Daniil

      Alfonso – absolutely. You should be able to find private lenders to fund this. Also think about talking to some local community banks. They usually finance new construction rentals at very good rates

  82. graham chisholm

    I am looking at tax sales for property to flip.These are auctions and will only know starting bid. Since we can not often see property, other than from the road,how do we assess rehab costs?
    also there are usually lots or large parcels of land at tax sales. instead of rehab this would be new construction.are lenders willing to finance these deals as well?

    • Daniil

      Graham – I often bid at tax sales. I at the very least drive by the property, peek in the windows to assess it’s condition. Often times I find these are vacant properties and I can actually get in to take a look around. If I can’t assess the condition, I usually assume the property will require a full gut and bid accordingly. Same thing with land – I buy land all the time and build on it. The right lender will fund any of these deals as long as the deal structure is correct

  83. I absolutely love your software! It has made a huge difference. Your videos are straight forward and easy to understand with terrific advise.

  84. Adam Bailey

    Daniil Kleyman is offering a great value with his software. It is the tool you will need to successfully fix and flip or fix and hold property and he offers it with a ton of free bonus material and information that is worth more than the software itself sells for. Its a no brainer and must have for investors. Adam Bailey Philadelphia PA

  85. Willie Tony Stephens

    I like the way it was put in your presentation but I think that I will wait until I get the valuator premium from you.

  86. Thanks for taking your time to show us everything ironed out in class. It was great to see it again because it just made it even better for me to learn thank you so much.

    • Daniil

      You’re welcome, Pauline!

  87. Anthony Stevenson

    Great video

  88. Danella Moore

    This is very helpfulinformation. I will get started on using this system to get my deal funded. Thanks for help me out!!!

  89. Great info. Daniil look forward to the webinare tomorrow, need to re-energize &focus! Thanks

  90. Justin Paul

    Definitely one of the best case study run throughs I’ve ever seen. I’m looking for private money for potential fix &flips opportunities in the San Diego county area.

    • Daniil

      Thanks, Justin!

  91. Jack K.

    Great practical information. Have $$$ to lend for Texas flips.

  92. Awesome. Thanks for another share of info. I defintely will utilize this.
    Thanks again

    John (mike) crum

  93. Ernie

    Great video and software. A carpenter is only as good as his tools!

  94. Ricardo Melendez

    Very informative seminar, really appreciate all the advice on how to fund the engine, but how about picking up the deal and negotiating value of property.


    • Jacob

      Hi Ricardo,

      Glad you liked it! As far as the other stuff you mentioned we don’t cover everything. We try and stay focused and do what we do well. As far as negotiating though the Rehab Valuator goes a long way in helping you with that. By doing a proper analysis you’re going to know what your maximum offer is which is 1/2 the battle.

  95. ken

    haven’t been able to use your rehab valuelator com to find out i need to go buy a program down load into my comp. to be able to use your program Ken Ps if you know of a way with out my having to buy let me know

    • JacobC

      Hi Ken,

      The new Rehab Valuator Online doesn’t require any additional software. It’s online and it’s AWESOME! You can check it out here:

      ​Let me know if you have questions.


  96. I really appreciate the content of this video. As a former investment broker we used similar tools to show people how they would make money through market investments. Most people like visual tools because it helps them to make sense of a deal and trust their instinct when making decisions

  97. Glenn E. Fleming

    Once again, Daniil, you are one of the best teachers out there! Your “trademark” approach to educating (especially for us visual learners) is golden. You always provide an auditory & visual “big picture” of the concepts before delving in deeper. The always added “bonus” with you (like a few other great REI educators) is that you walk us through, step-by-step, with regard to structuring and creating the deals utilizing your web-based software (again, for us visual & procedure-oriented learners). Lastly, you’ve yet again validated my strategy of raising private capital (once I have a mentor to guide me in real time): Since I have very little liquidable funds, I would offer around a 10% return with a profit split of approximately 25-50% just to get my foot in the door and prove my trust-worthiness and determination to close potentially awesome deals. After all, it’s about creating long-lasting, optimal “win-win” (aka symbiotic) relationships with other REIs/entrepreneurs, right? Thanks again, Daniil!

  98. One of a kind by design is a big supporter of this system infusion soft hit it right out of the ball park with this system. We truly recommend this for any one looking to start investing. When investor newbies visit our investment blog the first thing we ask them to get if this software system.

  99. great videos. very helpful

  100. Wendell Akens

    Great presentation, as always, with lots of new information to use. If a person can’t learn from you they’re just not conscious!

  101. Russell L. Harris

    Love the software

    How do I get it?

    • JacobC

      Hi Russell,

      I’m not sure what you’re asking. Are you asking how to get our Rehab Valuator program? If so you can find those options here: Rehab Valuator Pricing

  102. Darryl

    Danill, I’m new at the whole flipping house thing. I’m looking to partner with someone to learn the trade. Are you avalabe?

  103. Jennifer

    Very solid information. Thanks for sharing.

  104. Morace Wren

    Do you no where you can get a list of private lenders in Dallas Texas.

  105. Now so far no money from me have been mention, I am a person I want to know how much , off the back so how much is it going to cost me to start making US, money.

    • JacobC

      Hi Joyce,

      You can literally start out investing nothing. A lot of people start out wholesaling to raise some capital and yes others do their first deals and get them 100% financed. Either is an option.

  106. Hey Daniil,
    I still have your Excel version of RehabValuator. I understand it’s web based now. I’d really like to upgrade . . .but I’m not getting your emails any more . . . As always, this is great stuff. . . thank you for your excellent work and teaching!!!

    • JacobC

      Hi Mark,

      I’ll check your account settings and email you with details. Thanks!

  107. Hi Daniil!

    What a helpful video. I had never thought of the home equity option before, thanks for sharing these tips without charging for some ridiculous Ebook or whatever. You most definitely are NOT sounding like a salesman (rolls eyes at that guy up there ^^^). I’m in the process of finalizing a deal with a private lender and Im trying to decide whether I should do an LLP with him, or just give him a deed of trust.. I would think its less risky for HIM to take the deed, is it not? Any advice would be appreciated, thanks!

    • Daniil

      Hi Monica. Thanks and glad you enjoyed the content! First deed of trust is probably the safest way for him to go.

  108. Dan Quinn

    Having a hell of a time getting money for flips due to my credit is shitty but I own my house but due to the credit and technically no way to pay a loan back they won’t even give me a Heloc so I’m between a rock and a hard place. I think my only other alternative is to get a buyers list and start wholesaling until my debt is free and clear.

    • JacobC

      Hi Dan,

      Wholesaling can be a great way to raise some capital. Also, once you have some extra money, you become more attractive to lenders. In addition to that I would also encourage you to look for private lenders. They aren’t going to have all the hoops of a traditional bank or hard money lender.

  109. Nate

    We will have to see.

  110. Donna

    Excellent presentation. Thanks so much.

  111. ALways great info, always looiing for debt partners.In an extereml hot market Denver Co.
    Joe Capra

  112. Where are you suggesting one can readily meet these private lenders. Oh, by the way I have used rehab valuator for at lease four years and can attest to your viewers how great of a product it is.

    • Korrie McKeen

      A private lender can be anyone: a friend, a family member, an acquaintance. If you don’t know anyone that you think has the potential to be a private lender, you will have to go out there and network. You can start by attending local REI meetings. Chances are you probably already know someone who could be a good lender for you!

  113. Daryl Crabtree

    Your software is the best!

  114. Val

    Danill your evaluator is the next step that I need to help me with gaining private money. I currently have a CD to give to friends that I thank may have money to lend and Numbers always validate your system thanks for the validation

  115. robert seibel

    Will private lenders make long term loans competitive with credit unions?

    • Daniil

      You have to find the right lenders interested in long-term partnerships, but yes, they are out there!

  116. Lloyd

    You video is always outstanding; Thank you, but where do I get contracts to do a deal

  117. Greg

    Daniil, excellent content. Just purchased premium package and planning to put to good use. Thankyou

    • Daniil

      Nice! Welcome aboard, Greg!

  118. Lloyd

    Hi Daniil Great Presentation been learning a hold lot from your Video. I really appreciated all that you do

  119. K.F. (Jack)Griffin

    Daniil – Curious as to why you don’t have an option in the software for paying back the loan in a lump sum after the property sells (purchase, rehab, holding & closing costs being covered by the loan). Particularly since you talk about this very situation in your video, and it is very commonly talked about by all the gurus and non-gurus out there. I ran a report using these parameters, and it still showed “cashflow to lender” ongoing interest payments for holding costs, deferred interest on the loan, and deferred interest on the draw; none of which would be happening. It should be showing a lump sum loan covering purchase, rehab, and holding & closing costs, with no ongoing interest payments. The principal and interest, and holding & closing costs are paid back after the property sells, and should not be showing up on the report. Your thoughts? And just a heads up: In the top box on the Private Lender Funding Request Page that gives the property information, the “property street address” (you need to capitalize the “a” in address), the “property city, state, zip”, and the “notes”area are all center aligned, while the “beds, baths, sq ft, built” line is left aligned. As you can see, the center alignment is too close to the information under the “Presented by” area,and all those lines should all be left aligned.

    K.F. (Jack) Griffin

    • JacobC

      Hi Mr. Griffin,

      When you talk about paying everything at the end of a deal, when it sells, you’re talking about is deffered interest (just like it shows on the cashflow report). Your interest, which you owe each month, is being added to the loan balance instead of you paying it. At the end you pay the lump sum of everything (original loan amount, plus interest, plus interest on your deferred interest). The cashflow report is designed to show you exactly how the numbers add up which is why the defferred interest is shown.

      In regards to the formatting of that report I will have to look into that a little further. See if there is something we can do there to improve how it looks.


  120. Fredrick Bell

    Thanks Guys!!

    • JacobC


  121. Holly

    I have the lite software but am going to upgrade to premium. I think this software is a game changer. I am excited to try it. Your information is invaluable. Thanks.

    • Daniil

      Thanks, Holly!

  122. Vernon Henry

    Great presentation! Very clear in your explanation of the different strategies and there outcomes!

  123. Jean

    Superb presentation

    • JacobC


  124. Michael Surdyka

    Do you have the script for the videos? Good stuff. Thanks so much for the great info!

    • JacobC

      Hi Michael,

      No script at this time. Not a bad idea though. I’ll look into getting it transcribed.

  125. A. Tril

    Good job, Danill. Recently I have seen companies offering online to build business credit. For a fee of course.

    They guarantee you funding for your business. You give them $3,500 maybe even $7,500 and they start hooking you up. They’ll take the fee from anybody. However, ONE of them offers it for a buck and 9% of what credit they raise. Oh, well NOW they have several requirements (or they’d be working for free).

    The thing about these services is that they get you 0% credit on PLASTIC (credit cards). If you write a check on THAT kinda credit, you get a HUGE interest rate. (May as well be hard money). Ask them about it and you get a lot of talk but not much else – unless you hand them several thousand dollars. Then they run out and get you plastic (you can’t use) before you change your mind.

    But you still can’t buy property. Just stuff for your business. But we’re trying to raise our income not just feed everybody else that says they have our ‘answer for the future’…

    * * S o * * your video here is a breath of fresh air. You explain HOW to raise CASH (approach your lender). Biggest suggestion for anybody here is to think of someone approaching YOU with your deal and looking for money. What would YOU want to hear?

    I actually have an older rental (clear) and some equity in my own property. After listening to your presentation above, I will get a local credit union to put (probably at 75% value) a 5% mortgage on the rental and a HELOC on my residence. This will get me enough cash to put down hard offers. And I will get to keep most of the fees.

    When the financing is in place and I have ink on my first deal, I will then get your Evaluator. Yes, there are other tools out there. But yours is quite comprehensive. And (overall for value offered) inexpensive.

    south east Michigan

  126. Chelsey Franklin

    I am a RE Broker and Investor in CO and OK. I flip and assist other investors with their flips (flips and hold). This looks like a great quick and easy tool to use so thank you for that Daniil.

    I am curious if anyone in this feed has a good private/hard money lender they can recommend however!? I have a few deals going right now, I have another MLS guru who I am able to get and secure the deals through, however, I am stuck in that I can’t get too many properties going at one time.

    Of course I am happy to broker the deal for another investor but also see the monetary value in handling the full renovation/flip myself!


  127. DON





  128. This is powerful and simple to understand content. Thanks Daniel

    • Daniil

      Thanks, Will!

  129. WOW!! This is what I’m talking about. I started this process about 18 months ago. I went to workshops,seminars, think tanks and the likes. No one came close at any price for what you gave me for free!! This software helps explain what it is about real estate investing that has ME so excited. Now I believe I can accomplish my goals

    • StefanieK

      Best of Luck Isaac!

  130. understood video good job explaining it.

  131. Amazing training and software. Thanks for all you do.

    • StefanieK

      Thanks for tuning in Will

  132. george campbell

    Hi Daniil

    My name is George I love the software very much but one thing i would like to know is how do i go about finding private lenders and joint ventuer partner i just dont wan’t to start throwing my deals all over the internet to every dick tom and harry waiting for your reply

    • JacobC

      Hi George,

      We actually have a new Art of Private Money course that goes into some details about just that subject. I’m going to email you some more info about that right now.

  133. Dee

    Great Information!! Extremely essential in learning to succeed in this business. Thanks.

    • Daniil Kleyman

      Glad you think so, Dee!

  134. Steve Helms

    daniil, I purchased the premium at the beginning of the year for the $97 , did I hear you say that is a one time cost, How do I get in? Also this got my mind cranking, closing the deal in a land trust which turns real property into personal property, assigning to lender an agreeable percentage and after completion the lender assigns back the same land trust once he is paid off, thinking to do 110% loan to after value up front! let me know if your familiar? much appreciated

    • Daniil Kleyman

      Steve – it was a one-time cost years ago when it was an excel spreadsheet. It’s a much better, cloud-based software now and it’s a subscription. Either monthly or annual. As for land trusts, I don’t generally use them so can’t advise you

  135. Adam

    This was an awesome video. I am a licensed home improvement contractor in Md. making other people money.Now I want to start flipping but do not know where to find private money lenders

    • JacobC

      Hi Adam,

      We have a LOT of information about private lenders. Strategies to find them, how to talk to them, what terms you should be asking for, etc. We have quite a bit of free content concerning that BUT for a limited time if you want to become an annual subscriber of Rehab Valuator we are including our new Art of Private Money course. It really goes into detail about funding your deals, the different strategies, and even includes marketing materials you can use.

  136. william wright

    hey this software is awsome i will contact you shoetly about a small commercial deal i’m working on i know this software can help thanks

  137. Ron Amos

    Currently I am looking for a private money lender to help me purchase a property for me personally
    This won’t be a flip
    I need to get a property to home base on for me to live at and do my business
    I have been doing buy repair and flip projects for several years now but it is time for me to buy and hold a property so I have a home base rather than to be moving from project to project
    Are there any private investors out there that would like to finance me to purchase a property and get paid on a regular basis like a bank long term

    • JacobC

      Hi Ron,

      Those investors definitely exist. It’s just a matter of networking, building relationships, etc. to find a private investor you can partner with. Another option might be some form of seller financing like a subject to deal.

  138. James Kleist

    Thanks for the information good video. Now to find the lender.

  139. Such an unbelievable software. Never been this excited about sharing anything. I am still getting loads of thank you messages for sharing such a life-saving tool from my readers.

    • Daniil Kleyman

      We appreciate you spreading the word about Rehab Valuator, Richard!

  140. Daniel Benyamin

    Hi Daniel,

    Good job, I’m convinced that a lender would be inclined to extend a loan with such a well-written proposal.



    • Daniil Kleyman

      That tends to be the case, Daniel! Glad you see the power in this!

  141. Thank you so much Daniil for providing this information to us/me. I will forever be greatfull
    I have learned so much and almost ready on real estate investment. Thank you again, may you be blessed too as you have blessed many of us .

    • Daniil Kleyman

      You’re very welcome, Catherine!

  142. Frederick

    Thank you so much for sharing this invaluable information ! Definetly joining premium

    • Matt Lewis

      That’s great to hear- we’re glad to hear you are updating your account.

  143. Wayne Weber

    hey Daniil great information I learned a ton Thanks