One of the biggest misconceptions about private money lenders is that they charge very high interest rates for making very small loans. In fact, they charge rates that are relatively close to the long term average rate for mortgages on investment property and they frequently offer attractive interest-only payment schedules. Furthermore, because of the unique way that they calculate their loan to value ratios, they can actually provide generous loan proceeds for investors looking to buy and rehabilitate properties.

If you're looking to take down investment properties and having trouble getting money from your usual bank, you should consider tapping into the private hard money market. Private lenders offer fast execution, reasonable terms, and the ability to close on deals that banks will not do.