Further, you now own a “free and clear” property you can borrow against should you desire and probably get all your invested cash out.3.

I always try to be the "loan expert" for my borrowers.

As a private money lender, I can tell you that private lenders usually approve loans faster and with less paperwork, focusing more on the property and borrower’s ability to repay.

One of the most surprising experiences I had was when a borrower with a seemingly high-risk property came in with a last-minute change to their scope of work.

Scenario:A lender had limited communication with the borrower throughout the loan term, resulting in misunderstandings and lack of alignment on project goals and expectations.Mistake:Miscommunication led to issues that could have been addressed early on, contributing to project delays and difficulties in loan repayment.Lesson Learned:Maintain open and regular communication with borrowers.

DTI was also fine because the LTV was low and the borrower had an entire portfolio for income.

Hi,I have been doing private lending for a very long time, most of time first lien, some time 2nd lien also.recently came across a situation where first lien is already there on property and there is clause than 2nd lien can not be done on property.Investor(borrower) giving me option that we can prepare a new document for "Equity pledge" this mean conditional equity in property if there is default.I never heard this thing before.any one any input on this.Thanks in advance.

Most borrower's fall prey to bait and switch or scams because of this.

But with the way the value of the dollar and printing of money, I would rather have a loan in fifteen years with money that was borrowed fifteen years ago. 

@Spencer HerrickUnfortunately you have to usually leave 20-25% equity in a property you borrow against - so that more or less means there is little you can borrow against your first rental I suspect.