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All Forum Posts by: Stanley Yeldell

Stanley Yeldell has started 4 posts and replied 26 times.

Hey Antonio, welcome! Both deals have potential, but Deal 2 looks stronger overall—better area, healthier cash flow, and more manageable terms. You’re keeping more cash on hand and still building equity.

For Deal 1, tying up $45K for a C-class rental that runs negative cash flow early on is riskier. If you can negotiate better terms or lower the upfront equity, it becomes more appealing.

If possible, use a HELOC on your primary to keep cash reserves. Flexibility is key when scaling.

You’re thinking strategically—just watch liquidity and focus on long-term cash flow. Good luck!

Hey BP fam,

I wanted to drop a quick post about something I think more investors need to hear, private money isn’t just about funding deals… it’s about building relationships.

I’m a private money lender myself, and I also invest in real estate. I see a ton of messages from people asking for “quick funding” or “fast money” for their flips, BRRRRs, or buy-and-holds. And while the deal might look good on paper, what often gets missed is the trust factor.

Here's what makes me say "yes" as a PML:

Clear communication – You don’t need to be a seasoned pro, but I need to know the plan: purchase price, rehab budget, comps, timeline, and exit strategy.

Transparency – If it's your first deal, say so! If you've had a deal go sideways, share what you learned.

Follow-through – Nothing beats consistency and reliability. If you say you’ll send docs or call at a certain time, do it.


 Pro Tip:

Want to stand out to private lenders? Don’t just pitch deals, build a relationship. Ask us questions, check in with updates, treat it like a partnership, not a transaction.

Private lending isn’t transactional, it’s personal. And when you build trust, it becomes way easier to get funding on your next deal (and the next one after that).

Curious to hear from both sides, investors and lenders—what’s something that made a deal or relationship work really well for you?

Let’s help each other level up. 

Hey BP community,

As a private money lender (PML) myself, I’ve seen an increasing number of fake lenders popping up, especially on social media and online forums. If you're looking for funding, it's crucial to spot red flags before handing over personal info or paying unnecessary fees.

🚩 Common Scammer Tactics:

1️⃣ Upfront Fees Before Approval – Legit lenders might charge appraisal or legal fees, but beware of anyone demanding money before they even approve your loan.

2️⃣ No Due Diligence – A real PML will ask about the deal, your experience, exit strategy, and collateral—if they’re offering money with no questions asked, that’s a red flag.

3️⃣ Guaranteed Funding – No lender can guarantee a loan without reviewing the property and risk factors first.

4️⃣ Suspicious Communication – Poor grammar, generic email addresses (e.g., @gmail.com), and messaging through WhatsApp or Facebook DMs instead of business platforms.

5️⃣ Too Good to Be True Terms – If someone offers 100% financing, ultra-low interest, or “no credit check” with no collateral, be skeptical.

✅ How to Verify a Legit Private Lender:

🔹 Ask for references – Have they funded deals for other investors? Legitimate lenders should be able to provide past borrower testimonials.

🔹 Check their business registration – Are they licensed, or do they have a company website and verifiable online presence?

🔹 Talk to past borrowers – If they refuse to connect you with real clients, it’s a red flag.

🔹 Use escrow/title companies – Never send money directly to a lender—funds should go through a neutral third party.

I personally vet deals and investors before funding, and I always tell people to trust but verify. If you’re unsure about a lender, feel free to drop their details here or DM me—I’ll gladly help verify.

Have you ever come across a shady lender? Let’s discuss!

Virgil, you make some great points! Finding deals is easy—getting the funding is where most investors hit a wall.

While business credit stacking is a solid strategy for quick capital, many investors overlook private money lending (PML) as a scalable, relationship-driven funding source. Private lenders offer flexibility that banks and HMLs don't, especially for investors focused on fix-and-flips, BRRRR, and value-add rentals.

I’m a private money lender (PML) and help investors secure funding without the headaches of traditional lending. If anyone here is struggling to get capital for deals, let’s connect—I’d love to explore how we can make funding a win-win for your next project.

What’s been your biggest challenge with securing financing? Let’s discuss! 

Tori, great idea to build your own home! Getting a construction loan without formal building experience is possible, but lenders often require a licensed builder or contractor to oversee the project. Here are some strategies to secure financing:

1. Owner-Builder Construction Loan (Challenging but Possible)

Some lenders offer owner-builder loans, but they usually require:
✅ Strong financials (good credit, assets, low debt-to-income)
✅ A solid construction plan, budget, and timeline
✅ Proof of prior experience (renovations help, but formal experience is a plus)
✅ A licensed contractor or project manager to sign off on the build

2. Hire a Licensed General Contractor (Best Path)

Since you’re still getting your Michigan Builder’s License, you might have better luck partnering with a licensed contractor for loan approval. You can act as the project manager while the contractor oversees construction.

3. Local Banks & Credit Unions

Smaller banks and credit unions are more flexible than big lenders and might approve you with:
✔ A detailed project plan
✔ A licensed subcontractor network
✔ Proof of rental income history (since you own rentals)

4. Private Money or Hard Money Lenders

If traditional financing is a challenge, a private or hard money lender could fund the construction phase. Then, you could refinance into a conventional mortgage once the home is built.

Would you like any recommendations for lenders open to working with owner-builders?

Katryna, finding a private lender for a primary residence can be tricky since most private lenders and hard money lenders focus on investment properties. However, here are a few strategies to explore:

  1. Local Real Estate Investor Networks – Join local REI groups, meetups, or Facebook groups where private lenders may be open to funding primary residences under the right terms.

  2. Seller Financing – If the seller is open to it, you could negotiate a seller-financed deal where they act as the lender.

  3. Community Banks & Credit Unions – Smaller local banks may offer portfolio loans with flexible terms.

  4. Wealthy Individuals / Family Offices – High-net-worth individuals sometimes fund private deals, especially if they see strong equity and repayment potential.

  5. IRA or Self-Directed Retirement Accounts – Some investors lend money from their self-directed IRAs for real estate transactions.

Since you’re willing to pay higher interest for a short-term solution, a contract for deed (land contract) might also be an option, where the seller keeps the title until you pay it off or refinance.

Would you like me to connect you with any potential private lenders?

Shane, buying "subject to" in Illinois is possible, but the state has stricter regulations around real estate transactions. Here are some key things to consider:

  1. Find a Sub-To Friendly Title Company or Attorney – Illinois is an attorney-close state, meaning real estate closings are typically handled by attorneys, not title companies. You’ll need a real estate attorney experienced in creative financing.

  2. Land Trusts for Extra Protection – Many investors in Illinois use a land trust to hold title when doing subject-to deals. This can help avoid triggering the due-on-sale clause.

  3. Disclosures & Compliance – Illinois has strong consumer protection laws. Make sure to provide clear disclosures to the seller about the risks involved, especially regarding the existing mortgage staying in their name.

  4. Insurance Considerations – You’ll need to work with an insurance agent who understands sub-to deals, as the lender might require a policy that keeps the seller as the named insured.

  5. Due-On-Sale Clause – While banks rarely call loans due, it’s still a possibility. Structuring the deal properly (like through a land trust) can reduce this risk.

Your best bet is to connect with an Illinois investor who has successfully done sub-to deals or find a local real estate attorney who specializes in creative finance. Would you like some referrals or help finding an attorney in Peoria?

Hey Jimmy, sounds like a solid project with good cash flow potential. Here are some financing options to consider:

HELOC or Cash-Out Refi on Another Property – If you or your mom have equity elsewhere, this could be a more flexible and lower-interest option.

Business Line of Credit – Since the property is in an LLC, you might qualify for a business LOC, which could cover construction costs.

Private Money Lender – If you’re okay with 12-15% rates, a private lender could fund this as a short-term loan, especially if the guesthouse will generate strong income.

Construction Loan – Some lenders offer short-term construction financing, which converts to a longer-term mortgage once completed.

Seller/Partner Financing – Bringing in an investor or structuring a joint venture with someone willing to fund the build in exchange for a share of the income.

Credit Card Stacking or Unsecured Business Loans – Riskier but could work if you need to bridge a gap until the unit starts cash flowing.

Would love to hear more details—especially your timeline and expected rental income. Happy to brainstorm further!

Hey Jesse, sounds like a great opportunity, especially with the long market time. Here are some creative financing options you might consider:

Seller Financing – Since the seller hasn’t moved the property in years, they might be open to carrying a note. You could structure a low down payment with interest-only payments for a set period, then refinance later.

Master Lease with Option to Buy – Control the property now, generate cash flow by leasing it, then buy once it's stabilized.

Sub-To or Wrap Mortgage – If there’s existing debt, you might be able to take over payments or structure a wraparound mortgage to benefit both parties.

Hard Money or Private Lender for Reno Costs – If you secure a seller-financed deal, you can use private or hard money for the rehab without tying up your own capital.

BRRRR Strategy with a Bridge Loan – If you can get the purchase price down, use a bridge loan for acquisition and rehab, then refinance with DSCR or conventional financing.

Would love to hear more details to help structure something solid. Let me know how negotiations go!

Hey TJ, you're in a great spot already with disciplined savings! If you're looking for ways to accelerate, consider these options:

Seller Financing – Some sellers may finance a portion of the purchase price, reducing your need for a large down payment.

DSCR Loans – These loans focus on property cash flow rather than personal income, often requiring only 15% down.

Private Money Lenders – If you can find a PML willing to work with you, you may be able to put less down.

Partnerships – If you’re open to splitting profits, you could bring in a partner who funds the down payment.

Since you’re okay with the slower path, just keep stacking cash, but these might be worth exploring to move faster!