The fact is, good deals don’t last long! The very successful investors you work with will know that it’s not the cost of money that matters, but rather the availability of it when the time is right.
When investors find a good deal, they must act quickly. In order to take advantage of those good deals, investors either use corporate funds (them) or private funds (you) or both.
Having money available when an opportunity arises will often make or break a deal. Applying for a loan through a bank is a time consuming process which often causes real estate investors to lose a valuable opportunity. In addition, banks only approve loans based only on the purchase price and appraised value of the property, rather than the after repaired value (ARV) of the property.
Having adequate funds available at the needed time allows investors to secure a great deal, close quickly and also pay high returns to the private lender for this type of convenience. It is the perfect financial relationship with the perfect collateral as security.