This is a very broad question but to give a general answer, the reason why they exist is to finance properties that won't fit the typical bank credit box.

@Li Kia   Some people are just extremely hard on property.   

Bank - used another property with equity to minimize my down payment to $5,000.00 How did you add value to the deal?

Hello BP community,I’m exploring different financing strategies for my next investment property and am considering using a Home Equity Line of Credit (HELOC) as the down payment for a buy-and-hold property.Has anyone here successfully used a HELOC for this purpose?

I house hacked my way into my first rental property this past year and now manage the rental myself. 

I did purchase some multi-family properties, however, along the way I also discovered "excellent" single-family home deals that were too good to pass up.  

I currently own six properties in Indiana and I'm now looking to buy a condo here in Chicago for personal residence.

What you pay for the property, what you rent it for, who the tenants will be, etc.  

I was speaking with a property owner who is open to seller financing, but mentioned that I need to get approved by an RMLO.

I have a gutted carriage house on the back of my property, so my thought is to get my feet wet with house hacking by creating space for a longterm tenant.