Why, because they felt we were looking out for their best interest, gave them a fair increase in comparison to the competition and realized that they would have all the stress and expense of moving, in addition to a higher rent price....the latter is always easier.  

Yes, I am aiming at the stressed sellers before it gets to the auction, hoping to stay away from fierce competition and the game I have no experience with.

My spend is a little higher because Austin is pretty competitive I'm guessing.

And he's doing it in an extremely competitive and inflated housing market, no less!

They are more established and have no reason to see you as competition.

I can really close in one day... most can't I can buy without title insurance most cant so I beat so many of my competition that needed to use hardmoney or was trying to flipWe did not start to door knock until 5 to 7 days before they were going to lose it...

LA is a tough market, very competitive, but when you find a good one then you are set to go!!

@Jon Holdman good explanation in plain English, there is no disagreement I see, my statement refers to several risks, market risk, credit risks, repayment, collateral and so on, the interest rate charged is based on the risks assumed, including the risk of loss from any aspect.On the hard money lender side, they mostly set rates to the market, as much as they can charge and remain competitive, while they do some underwriting they seldom go  through any risk analysis, one reason the loan pool is usually too small to bother with it. 

If you can handle those items and focus on maximizing returns for your investors, you will have a competitive advantage (and enjoy work more).

Sad part is that with all the competition in the Cleveland market, and in REI in general, I am certain this opportunity will sell fairly quickly.