is it a good idea to use private money for buy and hold?

[Devin Mann]

i cant go through a bank yet because i dont have enough income to show that i make a year. 

i want to buy a rental property.  Is going through a private lender for a year or two a good idea?

[Jeff Rabinowitz]

The answer as it is in most aspects of real estate is...it depends. Do you have another source of funds? Do you have a private money lender who will loan at rates that will allow you to achieve your profit goals and for long enough to allow you time to refinance if necessary? Will you miss a profitable purchase if you do not finance this way? How long will you need to qualify for bank financing? What do you wish to accomplish?

Money is needed for real estate but if you stay in the game long enough and grow your portfolio large enough almost everyone will run out of their own money at some point. I know several successful investors who could qualify for bank financing who don't even consider that option anymore because it is too difficult, time consuming, and mind numbing to jump through the hoops that the banks make investors jump through. Private money can be very easy to obtain especially once you establish a strong track record with some lenders.