You can find a traditional HML and combne that with a secondary lender (also called gap funding) for the remaining balance you need as the borrower.

@Christian Nachtrieb, What you're referencing is what is called a "drop and swap". 

We all crave finding a deal, In today's market, that results with a lower interest rate than traditional lending.

This is NOT a Traditional LOAN ORIGINATION 

With the amount of load required to participate in a DST, and the high risk of the DST asset not appreciating to cover that load, is it more logical to cash out and traditional invest that capital?

Maybe that wasn't the case here.The contract was not an assignment that was presented but a traditional contract, most likely they were doing a double close. 

We own Mobile Home Parks and provide rent to own deals for those who cant get traditional bank funding. 

In your opinion, what are the benefits and risks of private money lending compared to traditional financing?

I've been interested in purchasing an investment property for several years, and honestly, pitching a STR unit on or near a lake was a much easier sell to my wife than a traditional rental.

As of July 1st, 2024 Colorado will be making a change from a traditional tax lien state to a system that is hybrid, more like Florida.