Independent Sponsor Due Diligence and Deal Cost Funding?

I've been looking at the self-funded and independent sponsor routes. The self-funded is pretty straightforward. The searcher pays for it all out of pocket and might to roll the due diligence and closing cost into a loan or pay themselves back out of the new cashflow.


What I am really curious about is how independent sponsors handle due diligence and closing costs. What happens with broken deals? The costs can add up quickly.