Creative Financing & Private Lending – Let’s Talk Deals

[Joe Grespin]

I've been seeing a lot of investors looking for short-term funding to close deals, cover rehab costs, or bridge the gap until a refinance or sale. With the market always shifting, having access to flexible capital can make all the difference in keeping a project moving.

For those who have used private money lenders before what terms have worked best for you? Are you structuring your deals with flat fees, interest-only payments, or equity splits?

On the flip side, for lenders in the space, how are you evaluating deals in today's market? I always look at LTV, borrower experience, and exit strategy, but I'm curious what other factors you consider before funding a deal.

Let’s share some insights, what’s working for you in 2025?

[Jennie Berger]

Quote from @Robert McClung III:

Hi Joe, 

I have used private money a few times and like lowest points and I/O payments specially if I can include it upfront and not have to make a couple months payments. Flat fees can work in this case also if no monthly payments needed. All my deals have been at 70% ARV so most lenders like it but exact market is huge as I have tried in few markets and certain lenders wouldnt touch them as they didnt like those markets.

Curious if anyone has ever used or worked with Lotus Assets Management LLC out of Kissimmee, FL. They were one of a few lenders offering 100% purchase and full rehab in Chicago, which most lenders are staying away from currently, but have an upfront fee after loan approval before funding. Company  looks legit and registered win FL and with SEC for investments but hesitant with upfront fee. 

How interesting they charge a fee BEFORE closing. 

I've never worked with a lender who employs this strategy. I'd recommend speaking with some of their past borrowers to hear the pros and cons, if the lender will share that info with you and you can actually validate that the borrowers worked with them before. It sounds convenient, and how nice to have 100% financing... However, as I'm sure you know, there are additional ways to fill that gap that traditional HMLs leave us with (15-20% cash equity to close) that don't require an 'up front fee', like equity partnerships, gap funders, etc.

If you don't close (for whatever reason, even due to no fault of your own - ie perhaps the seller changes their mind), is that fee refundable?