By safe I mean the person borrowing has intimate knowledge of rei and a track record.

It usually depends upon deal particulars, loan amount, ltv, strength of project, strength of borrower, etc.Just my .02

It's very useful in understanding which type of borrower you're dealing with.

In some states and cities, the Mortgagee can be responsible for the Demotion Lien as well as the Property Owner (Borrower).

I can do better both as a borrower and a lender.

Even though my main exit strategy was to the sell the note, sometimes you end up either doing a work out (restructuring) with the existing borrower or completing a foreclosure.

I do not wholesale, but a lot of people find it a good way to make some cash when they don't have any to invest, and learn the ropes a bit..You can also get creative on your borrowing or lookk at FHA and start a little buy and hold.. good luck!

In addition, the primary residence is still there and can be borrowed against if needed.

This puts me borrowing 40k from the bank.

Most hard money lenders I know also use ARV calculations to base determinations of loans for borrowers.