Question for Gator Lenders

[TJ Fries]

Remove or move if this is the wrong topic, but I have a question for the "gator"/EMD lenders. Pace Morby has a chart that he shared in a video, I think by accident actually, that showed his flat rate fee for EMD lending depending on the amount being borrowed. Do you have a similar chart that you follow? For instance, if you loan out $2,500 in EMD, you charge a flat fee of $1,000?

*Please no comments about opinions on gator/EMD lending. Some people love it, some people hate it. I get that.

[Noel Parker]

Quote from @Steve K.:

I have a lender who offers transaction funding (actual industry term for "gator lending") for free to clients who then use him as the lender on the property. He provides bridge loans/ short term financing/ same as cash purchase then refinance as needed for me and my clients to get deals done. There is usually a 6-10% charge for his transaction funding services. Typically EM is $20-30k in my market. $1,000 on a $2,500 loan would be exorbitant IMO, if that's a real example. It wouldn't surprise me however, as many of the fees I've seen associated with the program in question are ridiculously high (like $10k to set up an LLC when it should cost a small fraction of that, $250 for a promissory note while most title companies provide them for $50-80, $1k+ per file for a transaction coordinator's services on a cash deal (typical cost is $200), etc.). It seems people in that group just have no idea that they're overpaying for these things.

I have no idea what you are referring too with charging 10K to set up an LLC.. that is not in any of PACEs teachings. 50% of the gator fee goes to LLC to protect your personal identity (thorug holding companies) and setting up business LOC. the pricing for building business LOC is in line with the actual cost i got direct from PCS directly. also, his point is using a company to help and ensure you have the right architecture of your LLC is to protect your anonymity for buy and holds (which has we not taught in other mentorships).