there was a follow up post where someone got a loan from them but for realistic rates  8% or so and few points.. under 6% private / hard money simply does not exist unless its a family friends type situation. that bank rates or lower right now for new construction or fix flip  

If you aren't in that club yet, do a few flips and build some bank. 

The truth is, over the last few years, many of these people are barely cashflowing at all and the default rate with the banks on this product is skyrocketing.

The way I countered this (still not as good as buying a note with idle cash but I have checkbook control) is the money paid out from a note fund I invested in is at Axos bank.

this is only a good idea if you have reason to believe that the area will be appreciating quickly, which is called speculation and akin to gambling not investing. me personally, I would rather put my money on black than bank on market appreciation. negative cash flow rentals are a time suck and money suck.

But it won’t take that kind of event for someone who needs cash flow to fail.

Wood has a huge variability in strength--between pine varieties, the stress which can cause them to fail varies by more than 2x and you can see 20%+ increase in strength as it ages.Then I have stress concentrations which will yield and then redistribute the load in practice, but not according to the calculations I'm allowed to do. 

You must give notice before entering, but you do not require permission.Any time I expect a response from someone, I include a deadline for their response and a consequence if they fail.

If you want to put the deposit in a out of state/online bank, then you will have to furnish a bond.  

Unfortunately with those numbers it's tough to find a non-bank lender/financial institution that will lend.Usually loan minimums are $50K and the up to 75% LTV on purchase-money/70% LTV on cash-out refinancing, which basically means you need up 25-30% depending on the type of financing.