They are currently borrowing in the low 4% range.  

You pay yourself interest and they do not require any qualification other than you have to have enough money in your retirement plan to be able to borrow. 

If I went the hard money route it would have cost me approximately $20k to borrow that $100k for 8 months.

Cumulative across all borrowers. 

Understandably, the lenders perspective is to investigate a borrowers liquidity and debt servicing capability, but what methodologies do you use to review the actual investment?

If you get financing from a private investor how much interest is usually paid back to them along with the amount you borrowed?

Cut all expenses, don't eat out, get a raise at work, get rid of fancy cars, borrow against a retirement account, look for private money.

Here your 401k will be listed with other investors on a first position loan along with its percent interest.A knowledgeable broker (whom you should check out -- another topic) will have vetted the borrower and the property and should have paperwork obtained from a lending attorney.

Not sure if this is the right forum to post this, I came up with this plan, which, I am sure, many of you have used already, so can not claim it as creative, but like to get your opinion on pros and cons of this concept.I was looking at hardmoney loans, so if I borrow 100K at 10%, I pay $1000 a month, $6000 for 6 months, so If I can buy, and fix a property say in 150K neighborhood for 100k, put it out for rent, refinance at it's comp of 150K, so, at 75% of 150k, for $112,500,(after closing may be around 105K), pay off the hard money, so pretty much at a price of the closing cost, I can get an investment property.Please let me know if you see anything wrong in this process.

When I borrowed for the purchase and renovated the house, my lender is making me wait a full 12 months to pull money out.