Joe Homs 949-625-4533Real Estate Broker, Pellego · Real Estate Broker at Pellego

Private Money 101

26 Nov 2025 · 3 min

Watch on YouTube

2:49

This content was created by Joe Homs 949-625-4533. This content was uploaded by Joe Homs 949-625-4533. This is a YouTube video titled "Private Money 101" (posted 2025-11-26) featuring Joe Homs 949-625-4533 delivering a solo instructional/marketing talk on raising and structuring private capital for real estate. He outlines his lender-first deal structures and tactics (using private money for speed: flips, hotels, bridge-to-DSCR takeouts), required paperwork and protections (promissory note, recorded deed of trust, lender as loss payee, escrowed funds, sometimes personal guarantees), target underwriting (70–80% of ARV including rehab), payment and term options (interest-only, accrued interest, typical 6-month minimum), communication cadence (weekly updates with photos and budget vs actual), three exit strategies (sell, refinance/DSCR, wholesale), common red flags (wiring outside escrow, no recorded deed, vague collateral), and a call to action to book a session to see closed deals. The piece is instructional with a promotional element and is aimed at investors, sponsors, and prospective private lenders.

Chapters

Private Money 101, structures I use so everyone wins. I've raised millions in private capital and never cold DM'd a single stranger. The reason is simple. I structure deals so the lender wins first, so that and the money lines up. I'm Joe Homs, broker, mentor, and investor. I've used banks, hard money, hedge funds, and a whole lot of private lenders. If you're trying to scale or you want to lend safely, here's the playbook. Use private money where speed matters. Flips, hotels, and bridge loans into DSCR takeouts. Skip speculative land and long holds. Private capital is about velocity. Fast in, fast out. Paperwork is protection. You need a promissory note and a deed of trust recorded against the property and hazard insurance naming the lender as loss payee. Sometimes a personal guarantee. All funds move through escrow. No kitchen table deals. The paperwork makes it real and keeps friendships intact. Show the cushion. Target 70 to 80% of the ARV, including the rehab. Walk lenders through the math. So they can sleep at night even if the deal hiccups. Safety first is how you build reputable relationships. Offer clear payment options. Some lenders want monthly interest-only checks. Others prefer accrued interest at the end. Minimum term, 6 months, is common. Be transparent about rates and timelines and give real examples. Communicate weekly with a quick update. Photos, budget versus actual, and any change orders. Surprise is the enemy. When lenders know what's happening, they don't panic. They just cash checks. Always have 3 exits: sell the flip, refinance and DSCR, or wholesale the contract. Options equal confidence. Red flags to avoid: wiring outside of escrow, no recorded deed of trust, vague collateralization. If it smells off, walk away. Protect the money and the relationship. What do you do next? Book a session and I'll show you real closed deals. Payoff. Private money isn't begging. It's building safe, reputable opportunities. Get that right and you'll never run out of funding because lenders will chase you to place capital. Woo!