Lead with a simple credibility stack: be clear about your buy box and pricing logic, share a one‑page deal sheet on every trade (collateral, payor history, servicer notes, exit plan), and match your promises to your updates.

For lenders: what are you doing differently now in terms of collateral, terms, or borrower selection?

Vet hard: ask for a recent tape they sold and buyer references, verify they’re the seller or have a written mandate, avoid anyone asking for upfront broker fees before diligence, and insist on a clean chain of assignments plus collateral file access under NDA.

I typically focus on three main areas: checking the borrower’s payment history, assessing the collateral’s current market value, and running the numbers to make sure the note offers a solid return after all costs.

Notes work when you keep it boring and defensible: buy paper you understand, secured by real collateral, at a discount that pays you even if you need extra time.

That said, if you have strong equity and clear exit strategies, there are private lenders who may still be open to it—especially if you're open to cross-collateralizing or creative terms. those props if they are in a major city are squarely in the HOOD /  HIGH RISK or some small 5k pop town in fly over country.. just not worth the effort..

Focus on collateral first LTV, property condition, market rent, then the payor’s story and payment history; price yield to risk and prefer clear remedies with a recorded security instrument and servicer in place.

They purchased using a program that finances 100% of your purchase/rehab on paper, and takes a 15% deposit as cash-collateral that they hold until you refinance.• $60k purchase• $35k rehab• $95k total rehab loan payoff• 15% deposit = $14,250 "down payment"• $126k ARV (confirmed via refinance appraisal, borrower expected this to be higher)• 80% rate/term refinance ($100,800 loan) @ 6.75% [700-719 FICO]• Applied $4k of deposit to payoff for an updated payoff amount of $91k• Cover closing costs with 80% r/t refi + $2k back to borrower at closing (still considered a r/t refi if under $2k) + remaining $10,250 deposit reimbursed after payoff = $12,250 total back to borrower• $4k of his deposit + closing costs for rehab loan = his "cash" in the deal• $1,250 market rents• Total PITI = $765.62• DSCR = 1.6327 I do not see the hold costs.  

Sometimes pairing with a private lender or even offering better collateral keeps the deal alive.

That being said, capital gains are taxed at a different rate than ordinary income, but they can still only be offset through non-passive losses (which includes capital losses).A Securities Backed Line of Credit (SBLOC) allows you to take low interest loans from your brokerage using your securities as collateral.