Private Money Deal Structuring Tip: Pay Private Lenders with Their Own Money!
With private lenders for real estate, 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!
Next Videos
How to Put Together Funding Proposals Quickly and Effectively
How To Build Your Credibility Kit (Part I)
Thanks Daniil…
The only thing left …is for you to do the deal for us…lol
As usual, you have wowed me! I had thought of this in a very abstract way and you actually showed me how to make it happen! This is the best deal out there! I love Rehab Validator and all it offers! Your training is invaluable! Thank you! Thank you! Thank you!
Does the software include the accrued interest deferred over a 12 month period?
Can this be used to obtain and rehab commercial property? I’m looking to put my food and hospitality business into a brick and mortar
Smart strategy used it many times, working with your program has always been helpful.
Thank you for great in sight It will help me out greatly
Howard
Hi Daniil! That was a very nice presentation… I followed all the numbers but, had a question. I believe you said that by adding the $5,000 cushion on the rehab budget of $50K …that you would pay the $2600 origination fee to the PM lender and cover the $5,000 closing costs out of the $50K borrowed from the PM lender…. is that correct?
Also, you mentioned that some private money lenders won’t fund the entire rehab at closing and will only allow draws… does the initial draw take place at closing and is it high enough to still pay the closing costs and 2 pts to the lender?
Also, would you recommend getting hard money if needed to cover the closing costs and points to the PM lender if you do not have the available cash to pay it yourself? Thanks!
Hi Mr Kleyman I watch the video that was awesome thanks for all the jewels that you continues to give I appreciate all that you do keep up the amazing work blessings
Thanks Daniil, great content as always. You always over deliver. Regards, Joe
Nice explainer how to be flexible with financing request. Not sure it will work for newbie. I have spoken to number of hmls who have told me it is a reimbursed rehab draw. But I will keep trying to find ones that are flexible like this.
I’m looking for a private lender for my investment properties. You can structure private lending deals many ways, so rather than. It is One alternative is seller financing, where the seller takes on the role of lender.
Yes, this is just great & I will be glad to join all of your stuff when I can
Think you for your time & corperation, T.H.
Nicely done. Like the ‘options’ approach, much easier to reach agreement. Would like to see more deal option examples.
Keep up the great work.
Charles
Pps . Transcript does not match.
Daniil,
Great information!! Thanks for sharing! One question regarding draws, do you negotiate when the draws happen or is there a common formula lenders use?
Thanks for your input.
GOOD STUFF I WILL USE IT AFTER I LEARN WHAT THE VIDEO TELLS ME WHAT TODO
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.
Clever, Daniil. I followed this & it is a powerful strategy.
Rehab Valuator is the “bomb!”
Very useful. Thanks
I have used the process of borrowing more money for home improvements to pay back the loan for 2 or 3 years so the project is completed and in tht time increase my income before using my own money to pay back the loan. Never ever thought of using this method in RE investing.
Thank you for teaching us this wonderful powerful method.
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
Daniel,
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
Awesome,
please l need more clarity on cost of rehab per sqft.
Thank you
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
That’s an excellent presentation Daniil!
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.
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.
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?.
thanks.
matur makoi
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, 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.
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.
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.
Bob
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………..
Thanks for giving us this training on private money. Happy New Year to you and your family.
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.
George
Daniil,
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.
Great information!
Awesome presentation!
Very well explained and understood. Where can I get some examples of Executive summary Proposal Language to use in the Executive Summary Proposal.
Thanks I’m starting to understand a more and more with everything. Thanks
I wish you could see the smile on my face. REHAB VALUATOR IS A GAME CHANGER IN MY LIFE. GOD BLESS YOU AND YOURS!!!!!!!!!
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.
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?