The benefit would be lower interest rates for borrower and higher interest rates for the lender (compared to holding money in CD or bank)nerdwallet heres a brief article about these type of loans.Anyways.

With a cash on cash of >4%, it's better than a CD or savings account.

There are a lot of big players buying up rentals on cap rate around here, so the flips have been pretty hard to come by.I was buying at under 65% this time last year, been pretty hard to find at 70% lately unless you are doing add-ons in high dollar areas.

Prices in class A and B in the Bay Area has already gone past the peak in 2007, I do expect that would follow by class C, D, E....neighborhood in the Bay Area.

Become one of the inside players.

The product, money, then becomes an opportunity to provide a benefit over time, so you need to market it as such.I've had many people say, "well, yes, I guess I'd be interested in getting 10% on my CD money" and my response was something like "well, okay, we'll talk about it sometime if you're interested", most RE types would jump on that and go into thier pitch.

If this is a C/D type property I would go with splitting current boiler to larger unit then the other smaller unit put in electrical baseboard in each room.

I don't mean to come off as too critical but given the players mentioned there is almost no chance you can make direct contact with a person who can give you private access to buying the property once the bank takes title.

Anyway, for any other young players out there, before you bid on a property you see online on hudhomestore.com, google 'HUD Discount Broker'.

However, it is possible for an MP to get excited about an 8% return when it is being compared to a low yielding investment vehicle like a money market, a bond fund, or CD.