Private money sources are the most flexible sources of cash an investor can obtain.   When time is of the essence nothing beats cash.  Hard money lenders and the investor friendly community banks still require some form of underwriting and an approval committee prior to obtaining your funds.  The constant demands of the underwriting loan process take away from the investor’s true money making activities which are locating great deals and managing (cost control) of the rehab process.

Cash is still king when placing offers on foreclosed properties.  Lower cash offers are often accepted over higher purchase offers that require financing, within reason.  Banks have a glut of REO’s on their books that they are trying to liquidate as fast as possible and they are sick of all the financing (this includes hard money) deals that fall apart prior to closing. … Read the rest