A private money deal scenario that arrives half-built, with no clear property type, a vague borrower situation, or no exit plan, gets a slow back-and-forth at best and a quick pass at worst. A lender can only say yes to what they can see.
Structuring the scenario before you pitch is one of the highest-leverage habits a broker can build. Here is a simple way to do it.
Step 1: Define the Property
Start with the asset itself. Lenders sort deals by property type, so be specific about what it is: a single-family fix-and-flip, a rental, a multifamily property, or a new construction project. Include the location and the current condition of the property.
Step 2: Describe the Borrower's Situation
Next, explain who the borrower is and where they stand: their experience level with this kind of project, the capital they are bringing, and anything that affects how a lender will view the deal. Be accurate. A lender who discovers a surprise later loses trust in you, not just in the deal.
Step 3: Spell Out the Exit Plan
Private money is short-term capital, so lenders want to know how they get repaid. Whether it's a sale after renovation or a refinance into long-term financing, the exit plan should be clear and realistic before the scenario goes anywhere.
Step 4: Add the Numbers That Drive the Match
Include the loan amount requested, the timeline, and how quickly the borrower needs to close. These three details are what you match against each lender's criteria for loan size, asset type, and speed to close.
Step 5: Screen Before You Send
Before you send the scenario to a lender, check it against what that lender actually funds. A scenario that fits the lender's criteria gets a faster, clearer answer. For more on organizing lenders this way, see our guide on what stalls a first private money deal.
Get Your Private Money Deal Scenario Reviewed
Even a well-built scenario benefits from review. Inside PMB Network, members bring real scenarios to the Scenario Desk to work through them with brokers who have closed similar deals, alongside a vetted lender directory, Support Desk Q&A, and the Brokering Fundamentals & Advanced Strategies tracks. Membership is $79/month, cancel anytime, no contracts.
Always confirm what's permitted with your brokerage/employer and applicable state requirements before accepting or arranging compensation.
Key Takeaways
- A complete scenario covers the property, the borrower's situation, the exit plan, and the numbers (loan amount, timeline, speed to close).
- Lenders can only respond to what they can see, so an incomplete scenario slows or kills a deal.
- Screen every scenario against a lender's actual criteria before you send it.
- Peer review before pitching catches problems while they are still easy to fix.
Frequently Asked Questions
What should be included in a private money deal scenario?
At minimum: the property type and location, the borrower's situation, the exit plan, the loan amount requested, the timeline, and how quickly the borrower needs to close.
Why does the exit plan matter so much to private lenders?
Private money is typically short-term capital, so lenders need confidence in how and when they will be repaid, such as a sale after renovation or a refinance.
How detailed should a scenario be before I send it to a lender?
Detailed enough that the lender can judge fit without asking basic follow-up questions. A clear one-page scenario is usually better than a long, unstructured message.
Should I disclose weaknesses in the deal up front?
Yes. Being accurate about the borrower and the property protects your credibility with lenders, which matters for every future deal.
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