I would check to see if there are any issues as to why a bank may not lend on it and as the owner why they want cash.

Hi everyone,I am a beginning real estate investor with a question regarding private lending. 

@Jorge Zea, do HML really lend out 75% of ARV at just 10%, when your PP is only 63.8%? 

Lending terms, standards, and rates can be expected to be different in 2 years but you should have a much better idea of where you stand if you go through the process.

Leverage has it's place, but it's a double edged sword, it cuts both ways, it amplifies both gains and losses.For me, right now to meet my current goals, the right answer is doing a combination of flips and lending, and picking up some rentals along the way.

It's nice to lend to a friend or use as a solid reference.  

Even on institutionally held deals, the CAP rates aren't necessarily transferable (i.e. a large REIT might be able to drive down the cost of insurance considerably bc they are insuring multiple properties across multiple states and get lower costs on portfolios).  

I have not yet contacted any banks for lending options but have heard down payment requirements of anywhere between 10-30%.

@Scott Barker  in my mind private lending is belly to belly and DOES not happen on the internet or any other social media.. too many crooks out there .

Identifying passive investors with money to lend or invest is the easist part of the,e equation.