Who Borrows At High Rates?
Businesses that realize that its not always the cost of money that counts, but the availability. Private money makes it possible to acquire good deals because the funds are available quickly instead of waiting weeks or months for a conventional bank loan. An experienced real estate investor can locate good deals on property. Typically, a bank will loan on the purchase price not the value of the house, which would require the investor to use large amounts of his or her own money to cover the difference. Having cash available will make or break many deals and paying a higher interest rate is negligible since some profit is better than no profit.
