What 'No Points, No Junk Fees' Actually Means in Our Agreements

By Drew Haney · Founder, Rooster Capital · May 2, 2026

“No points, no junk fees” gets thrown around in funding marketing copy. Here’s the line-item version of what that actually means in our deals.

What we don’t charge

Most lenders bury fees in three places: origination points (1–4% of the loan), processing/underwriting fees (flat $500–$2,000), and exit fees (sometimes 1% on payoff). On a $50K deal, that adds $1,500–$5,000 of cost the operator never sees in the headline rate.

We don’t do any of those. Our split slides from 75% to the operator on Day 0–45 down to 50% by Day 180 (and 45% past Day 180) — so you make MORE on fast closes. That’s the whole price. No origination fees. No processing fees. No exit fees. No early-payoff penalty. No application fee. No credit-pull fee.

Why “junk fees” exist in the industry

Two reasons:

1. They obscure the true cost of capital. A 12% APR loan with 4 points and a $1,500 processing fee on a 6-month hold is actually closer to 22% all-in. But the loan officer can sell it as “12%.”
2. They give brokers/sales teams something to discount. Want a deal? “OK we’ll knock off 1 point.” Negotiation theater. The point was inflated to be discounted in the first place.

What we DO deduct from the deal

Real costs that come out of the deal proceeds at sale — not fees we charge:

• Property taxes incurred during the hold period (paid pro-rata)
• Marketing costs — Land.com listing fees, photo costs, MLS if the operator chose to list there
• Title and closing costs at sale
• Realtor commissions if the deal sold via an agent

These aren’t fees we make on the deal. They’re the actual costs of holding and selling the property. We deduct them from gross before computing the profit split.

How to read a real settlement statement

When the deal closes, you’ll see a settlement statement (often called a HUD or ALTA, depending on closing software). It shows: gross sale price, all closing costs, the buyer’s wired funds, and the disbursement of net proceeds. Our line item shows our exact share, calculated as 50% of (sale price − acquisition cost − pass-through costs).

If you ever see a line item from us called “funder fee” or “servicing fee” or “documentation fee”: it’s a mistake. We don’t charge those. Email me directly and I’ll fix it.

The trade-off, stated plainly

Hard money lets you keep 100% of profit but costs you 12–18% APR plus points plus fees. JV funding takes 50% of net but charges nothing else. On a 6-month deal with $30K of gross profit:

• Hard money @ 13% + 3 points: ~$1,500 points + $1,950 interest + $1,000 various fees = $4,450 cost. Operator nets ~$25,550.
• JV funding (sliding 75/25 to 50/50): At day 30, operator nets more; at day 180 gets 50% of net (after maybe $1,500 in pass-through costs) = $14,250 to funder. Operator nets $14,250.

Hard money looks better in this view — if you have $50K to put down and your credit qualifies and the deal goes as planned. Drop any of those three assumptions and the math flips fast. We wrote a deeper piece on the actual hard money vs JV math.