Catherine BellEmpowering Women to Create Financial Freedom Through Passive Income, Real Estate, and Social Impact

Unlock 4% Profit: Interest-Only Loan Secrets for Builders! #shorts

2 Aug 2026 · 1 min

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In this short explanation, the speaker outlines a financing arrangement for a custom home builder that uses an interest‑only loan of $1 million at a 12% annual rate. The platform offers the loan to the builder while guaranteeing investors an 8% contractual return, retaining the 4% spread as a processing fee. Additionally, the builder pays a 2% origination fee at closing, which funds the platform’s costs without reducing investor payouts. The speaker also references how this structure can be integrated into an equity syndication model, likening it to a GP/LP arrangement with waterfall‑style profit distribution, where the platform acts as the general partner alongside the builder.

Chapters

We set up an interest-only payment with a, say, a home builder. We're doing this right now with a custom home builder. They're taking a million-dollar loan with us. We're providing them that million-dollar loan at 12%, but we're paying our investors a guaranteed contractual 8%, right? And we're holding that 4% as that processing fee. Now the builder also paid us 2% on the loan as part of the closing costs. So we took a 2% origination fee so that way our investors didn't take that hit. We had it come from the actual builder. So an equity syndication, it's set up in a way where we can do like a waterfall or instead of the— it'd be more like a GP/LP situation where we GP with the builder.