Perhaps I can find a private lender or use a Hard-money lender.  

You could still do that if the money you invest by taking cash out generates higher returns than you are paying.2.

I don’t have that much money and even if I have I don’t want to pay this much for small water removal.

And spend my time working on the things I'm good at.I think they ARE valuable to have, especially if you're looking to raise private money   We live in a digital world now and anything you can do to set yourself apart can't hurt!

Call on them as they are buyers who maybe landlords etc.When searching don't jus look for cash buyers look for hard money buyers too.

An example of this would be mixing your personal money and LLC money in the same bank account.3.

Putting all this action into a partnership tax return reduces the risk right back down to an acceptable amount.Second, with a partnership tax return, we can mechanically show your capital contribution (at-risk money) including recourse loan debt.

I have been approached by a Realtor whom I know fairly well asking for me to do a hard money loan for a client of hers.  

Tax sales are by no means "easy money" like many people think and I would never recommend a tax sale for a first timer for EXACTLY these reasons.

To me paying 1% extra on a loan for 3 years and saving some money on down payment not worth the risk.