First, let's be very clear here.The mortgage your speaking of is a private agreement between the seller and the lender.

It’s clear that the evolving market, especially post-GFC have shaped your perspective, and you’ve outlined some valuable points about the flexibility and challenges of private lending.The flexibility in ARV and LTV is such a huge advantage, especially for investors who might not have traditional financing options.

What stage in life and in investing are you are questions I think you should ask yourself to get a clear picture.

Nomad also held the renter's deposit hostage even after I cleared the transfer with no damages to be charged.I had to remind Nomad there is a difference between “can” and should” , while you “can” hold a deposit longer it “should” only be done when there is a question about damages.My bank liked the guarantee, the disorganization inside Nomad and the horrible vendor management would cause me not to use them again.

Security Deposit: 2600Lease states no smoking/painting walls/no hanging things on wallsTenants have moved out and have left two truck loads of garbage to be removed.Damaged doorPainted walls which got on the ceiling and trim Lots of holes on the walls throughout the houseDamage from windows being left open constantly Weed was clearly smoked in the house (smell throughout the place) so we need to deep cleanWater bill wasn't paid so I had to turn back on utilityMissing keyQuoted costs:$450 junk removal (some furniture)$935 for damaged doors/windows, painting cleaning$30 for utility turn onTenants were only there for a year before moving out so a lot of this is beyond normal wear and tear. 

I have seen a number of cases locally where a party clearly did something illegal like this whether it be a landlord tenant or someone hiring a contractor.

The reason I even ask is because I do have a clear understanding of how loans works, or should work.

So the lender is in the clear and Lendbase isn't actually the lender.  

The 50% is rather deep a cut, especially with all the additional operational expenses not included into that 50%.

Former gas station with leaking under ground storgage tanks7. woodland with all the trees clear cut8.