If an association becomes largely rented out with few owner occupants banks will not lend on properties that are for sale in that association.

well since banks basically dont do this kind of lending at all for 95% of folks.HML  PML or  money partners is the only way to do it .. short of using your own cash.

Have you faced obstacles with high-interest rates in private lending?

@Alex SilangAs someone who does lending I would lend on a long term rental over a short term rental 10/10 timesA STR is more running a business and always having to stay booked whereas long term rental is more stable.Higher reward available = higher riskBanks do not like risk

@Zachary JensenHow do you get interest income from lending to be considered passive ?

If you need to secure a property quickly, or if you are doing renovations that can be completed within a year then you are better off using hard money or private lending options as they've got quicker close times and tend to be more investor friendly.

The only issue really is that this is not considered an "arms length transaction" so if you were going to a bank they may more hoops to jump through or lend less than they would in an arms length transactions or even pass on it.

Many syndicators may be underwater.

Most SMLLCs are basic but syndicates, funds and larger businesses have complexity

myself for real estate & project management, cash for lending, investor friendly title co