At Private Money Lenders, LLC (PML), our mission goesbeyond funding real estate deals—we’re here to empower communities andsupport those rebuilding their lives through real estate investment. Weunderstand that behind every property is a family, a neighborhood, and afuture. That’s why we’re committed to providing fast, flexible financingsolutions to investors who are revitalizing homes, restoring communities, andcreating new opportunities for growth. Whether it’s helping families rebuildafter natural disasters or enabling first-time investors to get started, webelieve that access to smart capital is a key part of rebuilding stronger, moreresilient neighborhoods.

By offering both Dutch and Non-Dutch loan structures,we give investors the ability to choose a financing path that matches theurgency and scope of their project. A Dutch loan allows for immediateaccess to capital with predictable payments—ideal for projects that need fastexecution, such as rebuilding homes after a fire or natural disaster.Meanwhile, a Non-Dutch loan allows investors to draw funds gradually,paying interest only on what they use—perfect for phased renovations orlonger-term community improvements. With both options, PML ensures that capitalflows efficiently to where it’s needed most—fueling meaningful change, oneproject at a time.

To your success,

The Team at Private Money Lenders, LLC

Dutch vs. Non-Dutch Loans: What’s the Difference?

When you borrow a loan, especially in real estate investing,understanding how interest is calculated can drastically impact your bottomline. This is where the Dutch loan structure comes into play, as it'svery different from the traditional (Non-Dutch) structure.

What is a Dutch Loan?

Also known as "full note" interest, a Dutchloan involves prepaying all the interest on the full loan amount, upfront ormonthly, regardless of whether the money is fully used.

🔑 Key Features:

• Interest     is calculated on the entire loan amount from Day 1.
• Even     if you don’t draw the full loan immediately (e.g., during a construction     project), you still pay interest on the full approved amount.
• Often     used for rehab, construction, or bridge loans with scheduled draws.

📌 Example:

You’re approved for a $500,000 Dutch loan.

• In     Month 1, you only draw $200,000.
• You     still pay interest as if you’ve drawn the full $500,000.

✅ Pros:

• Predictable     monthly payments.
• Easier     for lenders to underwrite.
• Good     for investors who expect to use the full loan quickly.

❌ Cons:

• You     pay interest on money you haven’t used yet.
• Can     reduce your cash flow in early project phases.

What is a Non-Dutch Loan?

Also known as “drawn balance” interest, a Non-Dutchloan charges you only on the funds you actually draw.

🔑 Key Features:

• Interest     is calculated only on the disbursed amount.
• As     more of the loan is drawn (e.g., for stages of a rehab or new     construction), interest increases proportionally.
• Offers     more flexible, cost-effective structuring for staged projects.

📌 Example:

You're approved for a $500,000 Non-Dutch loan.

• In     Month 1, you draw $200,000.
• You     only pay interest on that $200,000—not the full $500,000.

✅ Pros:

• You     save money by not paying interest on unused funds.
• Better     for long, phased projects where funds are needed over time.

❌ Cons:

• Payments     increase as you draw more funds.
• Less     predictable, which could make budgeting slightly more complex.

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Dutch vs. Non-Dutch:Side-by-Side Comparison

Feature

Dutch Loan

Non-Dutch Loan

Interest Based On

Full loan amount

Only drawn funds

Monthly Payment

Fixed/predictable

Increases as draws are made

Ideal For

Quick flips, short-term projects

Phased builds, slower rehabs

Cash Flow Friendly?

❌ (early phases)

✅

Risk of Overpaying Interest?

✅

❌

Which One Should You Choose?

• Choose     a Dutch loan if:
      You’ll use the full loan quickly, want predictable payments,     or need fast approval.
• Choose     a Non-Dutch loan if:
      Your project involves multiple phases, you want to save on     interest early on, or you're being conservative with capital usage.

Ready to Fund YourDutch or Non-Dutch Loan?

Don't let a lack of funding hold you back from achievingyour real estate goals. The team at Private Money Lenders, LLC is hereto be your strategic capital partner.

We offer fast, reliable, and transparent financing solutionsdesigned specifically for investors.

Let's analyze your deal together. There's no cost and noobligation.

Get a Free Quote in 24 Hours

CALL US: (310) 651-8000

EMAIL US: loans@privatemoni.com

APPLY ONLINE: www.privatemoni.com

Private Money Lenders, LLC

8888 W Olympic Blvd. Ste 200 Beverly Hills, CA 90211

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