A "TC" or Transaction Coordinator is a 3rd party, hired to help coordinate the Documents, Escrow Processes and Timelines of a transaction in order to help facilitate both a Secure and Smooth transaction. While a TC is not qualified to represent you legally, they operate with your best interests in mind and can be your second set of eyes ensuring that your transactions include Promissory Notes that clearly explain terms, Security Instruments are obtained and provided by a qualified party, and all documents are saved and recorded in a drive that gives you easy access, should you need to reconnect with any of the participating parties after Close of Escrow. 

It is important to note that you (the investor) are in the driver's seat in terms of Risk Tolerance and Lending Practices. You have some flexibility as to which processes of Due Diligence are most important to you and what checks and balances you will require on each transaction. Once a TC has received your request, and given you feedback on the Best Practices that will ensure a secure transaction, you can move forward with the confidence that your TC is in your corner!

TC's do not often get repeat business with client's whose transactions do not make it to closing so it is your TC's first priority to ensure any hiccups or changes in terms of an agreement are handled with care, communication and collaboration. 

Your SREO is your track record in real estate. This will show lenders:

- what you have done,

- if the projects are like the one you are now requesting funds for,

- if you exited the investments,

- how long it took you to flip projects in the past,

- how established you are on your BRRR projects,

- and much more!

Our lenders want to see your track record, this helps build trust that borrowers will return funds being requested.

If you do not have an SREO ready to go, it will help you not only when you work with us, but also on any future loans/investments.

Here is a template you can use. Please follow the red instructions at the top of the template.

The standard way this would go is:

1. TC will draft the JV Agreement

2. You review and sign off on the JV Agreement

3. JV Agreement gets sent to Title/Attorney (depending on state)

4. Title/Attorney will draft the Promissory Note and Deed of Trust

5. All parties sign those documents

6. Borrower will get those documents notarized

7. All signed and notarized documents held with title/attorney

8. Funds can then be wired to escrow

If the borrower has a cross collateral property owned outright that we can put a 1st position lien on the property and it can support at least 2X the amount being requested

OR

If the borrower has a cross collateral property with significant equity that we can put a 2nd position lien on the property and it can support at least 3X the amount being requested

***Primary Residences Can Not Be Considered as cross collateral***

We charge between 2-5 points (depending on complexity and timeframe) with a minimum of $2,000

Typically a connector bringing a borrower to us, needs to negotiate your fee separately with the borrower

We will email the borrower

If there is no response within 72 hrs

Then we will send a text message/call

If no response to the text/call within 24 hrs

Then borrower will be removed from our funding portal and will have to start the process over again if funding is still needed

Transparency is REQUIRED

If you have information you are not willing to share, then we are not the right partners for you

If you are worried about information coming up during the process, then it should be disclosed at the start.

When you wait for issues to be discovered, then we cannot correctly help navigate any of those issues ahead of time

J3 Fees: Points are charged at closing for J3 being the connector/funding partner

TC(transaction coordinator) fees: can vary, but on average are about $1,200. 50% due up front and is non refundable. The remaining 50% due at the closing table

Title/Attorney fees: These fees vary by state and company, but are required to legally put a lien on the property

Investor Return: The private money lender providing the funds will charge a rate that can be annual or flat depending on the structure of the deal

The key difference between a private money lender and a hard money lender in real estate loans lies in who they are, how formal their lending process is, and their typical terms:

🔹 Private Money Lender

Who they are: Usually individuals (friends, family, acquaintances, or investors) who lend their own money.

Structure: Less formal, more relationship-based, often flexible terms.

Regulation: Usually not licensed lenders.

Loan terms: Vary widely—can be more negotiable.

Use case: Often used when borrowers have a personal connection or want creative structuring.

✅ Think of this as "relationship-based lending."

🔹 Hard Money Lender

Who they are: Professional, often licensed businesses or funds that specialize in short-term real estate lending.

Structure: Formal underwriting process, strict terms, fees, and timelines.

Regulation: May be subject to state lending laws depending on their structure.

Loan terms: Higher interest rates and fees, but faster access to capital.

Use case: Often used for fix-and-flips, time-sensitive deals, or borrowers who don’t qualify for traditional loans.

✅ Think of this as "business-based lending with asset-backed decisions."

In short:
Private money is more flexible, relationship-driven, and informal.
Hard money is more structured, professional, and often faster but more expensive.

Getting funding is much easier if your credit score is above 700. Typically the higher your score, the better terms you will have presented to you.

We do have lenders who can work with a credit score below 650 IF you can help us understand why your credit is down at the moment.

PML

PMP

HML

Commercial

Transactional

Earnest Money Deposits (EMD) can only be lent if the money is still 'soft'. This means we cannot lend you the funds if you have already passed your Inspection Period/Due Diligence Period, because after that, the funds officially go 'hard' and are no longer refundable to the lender.

Biggest pitfalls include

1. The Inspection Period/Due Diligence Period has not been negotiated to extend to match the Close of Escrow(COE) date

2. The borrower is unwilling to ask the seller to sign the mutual release form stating that the lender has full rights to pull their funds at any point during the inspection period without waiting for a signature from the seller

3. The title company chosen is unwilling/unfamiliar working with an EMD lender. A title company can make or break your experience, make sure they are familiar and comfortable with creative financing. If they decide they will not cooperate with us as the lender, the only choice would be to switch title companies.