@Wade Wisner -  Most of the notes that we purchase we keep in our portfolio and borrow against them with private capital.

There is a lot of information on BP regarding being a private lender and outside groups taht have a lot of support in this space.

I might have a private lender referral that does rural loans in Mid-MO if you're interested. 

He talks about obtaining private money.

You set your own payment terms with YOUR client and then find funding for them.The Capital Syndicate is a private lender firm that offers financing through their own company, but they also provide you with a list of about 150 other private lenders. 

I've personally utilized private notes on three transactions and participated in another handful of negotiations with sellers on behalf of buyers in the past five years. 

Grabbing attention while highlighting your best features is key.

I have found this much easier than being a private lender. 

Question: Should I collateralize the loan (if using private or hard money), or rely on roll-over loans (to maximize the lower points and 3-4% rate)?

I do a lot of private lending and we do make some passive interest, but the good fixing flippers make the bulk of the money.