@Luke H.Hi Luke,  As a private money lender myself I will focus on one element of your deal---5 years is a long time to be finally paid. 

I am also a lender, with Chase Bank, but want to expand my knowledge on hard money and private financing options.

And it cost me some money.  

If you have a business entity(you want to properly track money going in / out from its owners).They will likely be classified as contributions / distributions.Best of luck!

Interest rates NEVER matter and you can make money all the time.

I don't even think its worth a sub-toSounds like you spoke to collections (who will tell you anything to get money) and not loss mitigation, as paying back due balances are NEVER part of a short sale.

@Dan GroveAs a private money lender I agree with Nicholas' sentiment.

As I addressed in another discussion, most money in real estate is made by long term appreciation and by improving, repositioning, and stabilizing the property, NOT thru purchasing at a discounted price.  

Quit nickel and dime'ing it, put more money in better/bigger deals.

@Matthew BeninateChase has worked well for holding money and they are nationwide so it's easy to access and too big to fail when your accounts go over 250k.