I have been hearing private investors cant close!!! What about you?

[Hans Restuccia]

I have heard of several cases where real estate investors have relied on private investors to lend on a deal and that the following has happened:

1. Too slow;
2. Do not return calls;
3. Too conservative;
4. Ask for too many docs, income, credit, etc.
5. Are scared of anything less than primo property;
6. And when all is said and done, they back of the deal for some bogus excuse and leave the investor holding the bag!!

Now of course, although I have truly head this tale more than once from mortage brokers, I am aware this is a generalization. But I am HEARING this more often.

How do you feel? Would you rather work with a professional HML or with a private investor? What has been you experience.

[Dell Schlabach]

I work with two primary private lenders, and three that fund one deal at a time.

The ease of working with them, the minimal paperwork, they all fund purchase and rehab 100%, I do six month notes and pay all interest upon closing.

I have not had one get "squirrelly" on me, or not deliver, the HMLS I have talked to seem a lot more complicated, with a greater chance of not funding than any of my private lenders, but I may be the exception.