I’m primarily evaluating the deal I’m lending on, but I also want to see what kind of track record the borrower has in managing their financial obligations.

Business credit allows a company to borrow money that can be used to purchase products or services.

I borrow money at 13% now if I can make 25.

Borrow hard money yourself, keep 100 percent.

I borrow from private investors at 8% interest capitalizing.

@Jerome MorelosIt will be similar to what you sign with a bank, there will be a note (which is the iou which states how much you can borrow and at what terms and length)Then there will be a deed in trust (assuming California) which is a recorded document that uses the property as security.

The borrower outlines there plan and dates and it is set up with the LOE in the file but in most cases where the bank holds the paper/loan its sent to the credit committee for the final approval and we close. 

This nonsense about paying full price off the MLS and using borrowed money to cover the closing costs is very alarming.You haven't said that, but a popular guru has and he has sold a lot of "memberships" in the process.

Depending on the lender, short term rentals usually require the borrower to be considered an experienced investor which for some lenders means you have held an investment property for at least a year.

Banks and credit unions can also offer flexibility for investors that engage in strong relationship-building strategies, offering discounts and solid loans in exchange for borrowers willing to use the institution for other purposes (savings accounts, etc.).