Why would an investor be willing to pay high returns for the money?
To us, the real estate investors, the availability of the short-term capital is very important and sometimes it is more important than the cost. For example, we might need to borrow small amount of anywhere between $10k and $60k (on rear occasion it might be more). We need to be able to move quickly to be able to buy houses and at the same time help sellers to make a difference in their lives. Banks just take too long to approve a loan. Also, this process would limit our ability to buy more houses by being able to put only a certain amount of loans in our names or by requiring huge down payments that can hinder our ability to grow the business the way that we needed to grow it. It is really a win-win situation. If you are using a credit card, you are also willing to pay much higher returns for the availability of short-term cash. So this is a win-win for everybody.
