1. We win by having someone we can work with. Not a bank, but a real person that we can talk to about our project, show them our property and work out terms.
2. The private lender wins from much higher interest rates than banks are offering and the securing of a first position trust dead.
We Borrow $45,000 Against a $90,000 House
That right, a 50% loan to value. We borrowed it from a financial friend that we new for over two years before we did our first transaction.
Now that we've done our first transaction, we expect to pay him back soon. When that happens, he said he'd be happy to re-lend it to us for another project!
Does anyone you know what to lend money secured by rental real estate? Let me know!