Sharp in law. Connected in your deal.
Private money lending counsel—structured fast, documented right, and closed with clean title
The Bow Tie Advantage for Lenders & Borrowers
- Lenders/Investors
- Structure private/hard money loans for flips, BRRRR, rehabs, and small commercial.
- Draft promissory notes, mortgages/deeds of trust, personal guarantees, and security agreements (UCC‑1).
- Title/escrow coordination, collateral review, lien priority, and assignment prep.
- Compliance guardrails (interest/points caps, disclosures where required, usury checks).
- Workout, forbearance, extensions, and enforcement strategies.
- Borrowers/Developers
- Deal‑fit evaluation: leverage, timing, exit plan.
- Negotiate points, interest, fees, and draws.
- Clear scope: rehab budget, draws, inspections, lien waivers.
- Close fast—with clean title and recorded security.
Typical Use Cases
Fix‑and‑flip funding in Cook, DuPage, Will, Lake, Kane, and surrounding counties.
Bridge loans to compete with cash offers.
Rehab and construction draws with holdbacks.
Acquisition of REO/auction properties where bank financing is too slow.
How It Works (Our Process)
Target Timelines: As fast as title clears and docs are signed—often 3–7 business days on clean files. (Rush available.)
- Deal Intake (Same Day): Submit address, purchase contract or current title, budget, timeline, exit plan.
- Term Sheet: We help set/confirm LTV, LTC, interest, points, term length, and draw schedule.
- Diligence & Docs: Title order, lien/HOA/payoff checks, entity docs, insurance binders, rehab scope, note + mortgage + guaranty.
- Closing & Record: Coordinate escrow, collect funds, sign, record mortgage, file UCC‑1 if applicable.
- Post‑Close Support: Draw inspections, lien waiver packages, change orders, extensions.
What We Prepare (Core Documents)
- Promissory Note
- Mortgage/Deed of Trust (Illinois Mortgage)
- Assignment of Rents (if applicable)
- Personal/Entity Guaranty
- Security Agreement & UCC‑1 (for equipment/fixtures)
- Construction Draw Agreement & Rehab Budget Exhibit
- Hazard Insurance/Lender’s Loss Payable Endorsement
- Title/Closing Instructions & Escrow Letter
- Payoff Letters, Subordination/Intercreditor (if needed)
Pricing & Engagement
Transparent quote after initial review. Government recording, title, escrow, courier, and third‑party fees billed at cost.
- Flat‑fee drafting packages for standard investor loans.
- Hourly for complex structures (cross‑collateral, mezz, multiple parcels).
- Rush fees only when deadlines are accelerated by client request.
Lender Readiness Checklist
- Entity docs: Articles/Operating Agreement/Resolutions
- Proof of funds & wiring instructions
- Desired terms: Max LTV/LTC, rate, points, term, prepay
- Insurance requirements
- Rehab/inspection approach
- Servicing preference (self, escrow, or third‑party)
Borrower Readiness Checklist
- Executed purchase contract or payoff/loan statements
- Entity docs & EIN (or personal if not using an entity)
- Rehab budget & contractor info
- Appraisal/BPO (if available)
- Insurance binder (post‑close)
- Exit strategy: refinance or sale
Compliance & Important Notes
- We are attorneys—not a bank. We do not advertise consumer loans and do not originate owner‑occupied residential mortgages. Our role is legal counsel for private, asset‑based transactions.
- Private lending is regulated. We check usury and applicable state/federal disclosures and coordinate with your title/escrow.
- If a deal is consumer‑purpose (e.g., owner‑occupied 1–4 family), different licensing and disclosures likely apply; we will advise on compliance or decline/redirect as appropriate.
- Investors should understand risk of default, foreclosure, market changes, contractor issues, and mechanics liens.
- Borrowers should understand lien priority, default interest, fees, and remedies.
Disclaimer: This page is informational and not legal or financial advice. Engagement begins only after a signed agreement and fee arrangement.
Service Areas
Proof & Community
“Closed in 6 days with clear title and a clean draw process. The Bow Tie team protected our lien priority and kept everyone honest.” — J.D., Bridge Lender
Join the Bow Tie Community to swap insights with Chicago brokers, investors, and lendersFAQs
What’s the difference between private money and hard money?
Private money is sourced from individuals/funds with flexible terms. Hard money is typically from professional lenders with set guidelines. We support both—always with proper documentation.
How fast can we close?
Clean title + ready docs can close in 3–7 business days. Complex files take longer.
What LTV is typical?
Commonly 60–75% ARV or purchase price, depending on rehab scope and experience. Terms vary by deal.
Do you service loans?
We can set up a servicing plan with escrow/third‑party or provide templates/process if you self‑service.
Can points and interest be prepaid/rolled into the loan?
Often, yes—subject to collateral value and lender comfort. We structure this in the term sheet.
Do you handle construction draws?
Yes. We build draw schedules, inspection checkpoints, and lien waiver packages.
Can you help if a loan goes bad?
Yes. We handle workouts, forbearances, deed‑in‑lieu, or foreclosure enforcement as needed.
Do you work with out‑of‑state investors?
Yes—many of our lenders are remote. Closings and recordings can be handled electronically in most cases.
Will this show up on my credit?
Private loans generally rely on the collateral, not consumer credit reporting. Discuss with your lender.
What if there’s a mechanics lien?
We check lien waivers/protections and can litigate priority disputes if necessary.
