@Dylan Brown thanks so much for the thorough explanation.

This could cap price growth compared to other markets that are physically limited by geographic boundaries.

@Jay Hinrichs and @Chris Seveney - appreciate the explanations.  

Thanks for the explanation.

What geographical areas are you two focusing in? 

I'm not a tax guy, so I won't pretend to be one now...That said, he's likely given you half the story or you misunderstood half...What he's referring to on the cash-out and you are looking for on the re-investment are the IRC "interest tracing rules"...I'll let a real tax guy handle the explanation, but a search for that term should get you where you need to go. 

If you’re flexible geographically, some investors are also branching into out-of-state multifamily (I invest in Ohio myself) where numbers can pencil out more cleanly and creative financing options are more common.Happy to share how others are making it work or what to watch for depending on your strategy.

If it was just an email (again have not seen it) that says they are pausing with no explanation etc. that would be a very big cause for concern.3.

Long Terms: Rental/DSCR loans generally have longer repayment periods, typically ranging 15 years, 30 years or 40 years.Pros of using private money lendersQuick Access to Funds: Ideal for time-sensitive deals, allowing investors to seize opportunities swiftly.Flexible Lending Criteria: Accessible to borrowers with less-than-perfect credit or unconventional income sources.Focus on Property Value: Lending decisions are heavily based on the potential value of the property, not just the borrower's financial history.Potential for Customized Solutions: Negotiable loan terms and creative financing options can be tailored to the borrower's needs.Cons of using private money lendersHigher Interest Rates: Can lead to higher overall repayment costs compared to traditional loans.Less Regulation: The private lending market has fewer regulations than traditional banking, potentially leading to less transparency and higher risk for borrowers.Variable Loan Terms: Terms can differ significantly between lenders, requiring careful evaluation to avoid unexpected costs.Selecting the right lenderAssess Lender Credibility: Check their experience, reputation, and licensing (if applicable).Compare Loan Terms: Evaluate interest rates, loan duration, and associated fees.Ensure Transparency: Look for lenders who provide clear documentation and explanations of their terms and fees.In conclusion, private money lenders offer a valuable financing alternative for real estate investors, particularly when speed and flexibility are crucial.

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