But in reality, it simply means a loan secured by real estate and not based on credit or ability to pay.We have given our own meaning to the terms private and hard money, but in the end, the reputation of the lender and their ability to deliver what the borrower needs are more important than what you call them.

In reality, that doesn't work very well, and, at your price point, 1.5% is what's needed to be profitable.

This is what my lender told me:"In reality they go hand in hand.

I feel like often times we experience a lot of things in life that slant or bias us one way or another, and teach us our own version of reality.  

In this case the LTV would be 40%, not usually a number depicting desperation.Maybe I'm not understanding the thread...Edit: sorry, title says it all "practice", you have the concept, but this scenario is FAR from reality.

The reality is most "private lending" is breaking the law.

It won't cost you anything, and they will have access to the MLS to help you determine the true value.Second, do some reading in the Landlording and Rental Property forum about the realities of being a landlord.

Now, just FYI, here are links to articles before and after my talk and I am copying an article printed less than 60 days ago...this article describes exactly what I saw in the city and exactly what was explained to me about the investment reality on the ground.

I design the rehabs myself, with the help of my contractor who brings me back to reality that we actually have a budget to work with.

Seems too, that the seller agreed to seller financing with a down payment and now the attempt is to substitute the down payment with another form of security, as I'm betting we have limited cash to work, with if any.Seems like we are hunting that white elephant with a spear.If that is the case, I applaud Juan's creative thinking in his attempts but a dose of reality to see if this can be a doable deal.First you need to know why the seller has a cash requirement and what the amount is.