Private Money LendersLearning Center
Long-form guides from the underwriting desk.
Plain-English deep dives on how hard money, fix-and-flip, DSCR, and construction loans actually work — written when a question shows up enough times in borrower calls that a single canonical answer beats answering it forty more times by phone.
Dutch vs non-Dutch interest. A borrower’s guide.
Dutch interest charges you for money you have not borrowed yet. Non-Dutch charges only what you have drawn. On a typical fix-and-flip, the difference is one full percentage point. On a 24-month ground-up build, it can be the difference between a profitable project and a marginal one. Worked math, side-by-side cost comparison, and the exact phrases to look for in a term sheet.
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Dutch vs non-Dutch interest
How interest is calculated against drawn versus committed funds, and why the difference is hidden in the term sheet rather than the rate.
Read Fix & flip mathThe 70% rule, deconstructed
Why 70%, when to stretch to 75%, when to drop to 65%. Three worked deal scenarios across ARV bands.
ReadHow lenders verify percent-complete on construction draws
The third-party inspection process, what trips up first-timers, and how to structure your contractor agreement to keep draws moving.
Coming soonDSCR loan calculation, with worked examples
How PITIA is built, what counts as gross rent on STR vs LTR, and the four levers that move your DSCR ratio above 1.20x.
Read BRRRR strategyBRRRR mechanics from acquisition to refinance
The full sequence: hard money in, rehab, lease, season, DSCR refinance out. Every step, with realistic timelines and capital requirements.
Read Hard money basicsHard money vs conventional: when each one is the right tool
Speed, leverage, documentation, and exit-strategy tradeoffs across the two loan types — with a decision matrix.
ReadTopic clusters
Articles group around six topic clusters. Each cluster will eventually contain a complete reference set on one subject.
Loan structuring
- Dutch vs non-Dutch interestPublished · 14 min
- Origination points vs rate trade-offsIn progress
- Recourse vs non-recourse on commercial loansIn progress
- Cross-collateralization explainedIn progress
Fix & flip math
- The 70% rule, deconstructedPublished · 13 min
- Calculating ARV that lenders will actually fund toPlanned
- Holding cost math: how 30 days of delay kills profitPlanned
- Wholetailing as a 70%-rule alternativePlanned
Construction draws
DSCR & rentals
Hard money basics
BRRRR & strategy
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