Cost of borrowing goes way down when no one wants to borrow like in a bad economy.

It is secured with  👇 Controlled Interest: We include our investors as a 51% controlling interest member on the borrower’s operating agreement.

If there are any issues with the borrowers, I don't have to deal with it.

. - Hence why all the DSR loans we've seen have a required document the borrower signs that states the lender will start foreclosure proceeedings if the borrower ever occupies the property.Please correct me if I'm wrong or clarify anything I missed.

One of the biggest risks I observe with flips and first time investors are instances where the project goes over budget or gets stuck in mud, can't sell and even worse the borrower doesn't have the credit profile to refinance out to a lower interest lending source if borrower is required to hold the property as a rental. 

If they do not qualify because of poor credit or income issues compared to being self employed etc there are differences - but typically people don’t qualify due to poor credit and people will seller finance to these borrowers thinking they woke up at a holiday inn and got a finance degree when in reality they repeat their past mistakesRemember the definition of insanity is doing the same thing over and over again expecting a different result

Quote from @Virginia VanOeveren: To start as a private money lender, educate yourself on real estate investing and lending practices, define clear loan criteria, and conduct thorough due diligence on borrowers and properties.

There are two types of borrowers that fail at a much, much higher statistical rate than any other...1) borrowers with little experience, and 2) those putting nothing or very little down.

All require the "lender" to be licensed in the state, for borrower to have no mortgage lates or hiccups, have different rules and change the rules whenever their investors (not government MBS these are big guns investment firms with pulse of the location where your property sits) see clouds in the sky.

Depending on how much equity in the property would be key as you cannot borrow 100%, if its investment property 80% is max typically.