Private lending - what's involved?

Discover few things that make the private loan investment considerably more involved than a bond investment.

-Collateral Valuation
-Borrower Credit
-Private Lender Insurance-

private lenders also require a large down payment, anywhere from 30% to $40 %.Besides they charge high interest rates(6%-13%).However Private loans are often processed much quicker than mortgages through a traditional lender, and can also be drafted up for whatever duration the two parties agree upon.

Can you differentiate the pros and cons of working with private lenders?

Pros: Fast Closings, Funded Deal, and Profitable to both if executed correctly.

Cons: Just read the first part of Moses O response. Therefore it takes money to make money.