Question for Gator Lenders

[TJ Fries]

Remove or move if this is the wrong topic, but I have a question for the "gator"/EMD lenders. Pace Morby has a chart that he shared in a video, I think by accident actually, that showed his flat rate fee for EMD lending depending on the amount being borrowed. Do you have a similar chart that you follow? For instance, if you loan out $2,500 in EMD, you charge a flat fee of $1,000?

*Please no comments about opinions on gator/EMD lending. Some people love it, some people hate it. I get that.

[Steve K.]

I have a lender who offers transaction funding (actual industry term for "gator lending") for free to clients who then use him as the lender on the property. He provides bridge loans/ short term financing/ same as cash purchase then refinance as needed for me and my clients to get deals done. There is usually a 6-10% charge for his transaction funding services. Typically EM is $20-30k in my market. $1,000 on a $2,500 loan would be exorbitant IMO, if that's a real example. It wouldn't surprise me however, as many of the fees I've seen associated with the program in question are ridiculously high (like $10k to set up an LLC when it should cost a small fraction of that, $250 for a promissory note while most title companies provide them for $50-80, $1k+ per file for a transaction coordinator's services on a cash deal (typical cost is $200), etc.). It seems people in that group just have no idea that they're overpaying for these things.