The amount written into the agreement isn’t the amount that reaches your account. Fees, brokerage, and prepaid interest come off before the project even starts, but the interest is calculated on the full amount.
Rate, fees, prepaid interest, net funds, payment, balance at maturity: all of it gets calculated, then checked against what will repay the private lender, not what’s merely hoped for. The question is the exit, not the rate.
Discuss my private financing needMy network also includes private and specialized lenders. Before pointing you toward private financing, I check whether a traditional or specialized lender can do the job, because it costs considerably less.
Your bank said no and offered no alternative. Finding a private lender on your own means signing a short, expensive, technical agreement with nothing to compare it against. If private is still the right option, I compare lenders on what you receive, not just the rate: fees, brokerage, prepaid interest, mortgage rank, and renewal conditions. And if the structure doesn’t hold up, I say so.
Amount required, the deadline, property value and secured debts. Approximate figures are enough to start.
Before going private, I check what a traditional or specialized lender can do. If it works, you save a great deal.
What you receive at funding, the balance at maturity, and the specific event that will repay the loan.
I coordinate through to the notary, then stay on the file to prepare the refinance or sale before maturity.
Lender fees, brokerage, legal costs, and sometimes prepaid interest are taken at funding. So you receive less than the amount in the agreement, but the interest runs on the full amount. That gap is what you need to see before signing.
Private financing gets repaid by a sale, a refinance, or restored income, on a specific date. “My file will look better in a year” isn’t a plan, and if the exit fails, it’s an expensive renewal or a forced sale.
Private financing works differently. Unlike a bank file, where the lender pays me, private files often involve fees: lender fees, brokerage, sometimes interest deducted at funding. That’s part of the real cost of the loan, not a hidden extra. What it costs, in detail
Short-term financing should be presented with net proceeds, maturity, and a scenario for a delayed exit.
For a temporary need, when standard financing isn’t available at the moment you need it. We review the property, the equity, your ability to pay through the term, and the planned exit. Before anything else, I look for an option that would spare you the private route. Often there is one.
Depending on the file: lender, brokerage, appraisal, legal, preparation, renewal fees. I insist they be shown separately, and I calculate what you receive net along with the total cost through maturity. You should never discover a fee at funding.
It’s how you repay the private mortgage: a standard refinance, a sale, or another confirmed source. It needs a date, the changes to make, and measurable evidence. “Improve my credit” is not an exit plan. What is: exactly what gets corrected, by how much, and by when.
An extension isn’t guaranteed. And if you’re offered one, it can add fees or change the conditions. That’s why we track the plan well before maturity, with a fallback ready. I price that scenario with you before signing, not in the month it turns urgent.
Rank decides who gets paid first out of the property, and that changes the risk, the amount, and the cost. A second mortgage sits on top of your existing loan; it doesn’t replace it. So I calculate both debts together, and check the required consents and conditions before we compare anything.
Major banks, credit unions, and specialized lenders each apply their own criteria, products, and terms. A logo does not mean that a mortgage will be offered or approved.
