We have been reading for quite some time how it is hard to get financing in today's market to complete a real estate transaction. You will find that many of the old ways are still available.
While it might not be in vogue today, many of the old traditional ways still work.
In these tight times, many of the owners are willing to finance the deal just to get rid of the house. A stressed owner is increasingly supportive as the source of their distress become greater. This transaction might help in two ways: positive cash flow for you and stress relieve for the owner.
Private money has always been an option but with the low rates offered on savings in the financial community along with the highly volatile stock market, more and more people are seeking a steady 8% return on their investments. If your deal makes sense to you, it may make sense to the cautious investor.
Final but not least: if you are looking at a good deal, you may have only two options - use a hard money lender or walk away from the deal. A good deal is worth spending a little more (hard money) and taking advantage of the good deal that you spent so much time to uncover. One of the oldest proverbs in real estate investing is 10% of something is better than 100% of nothing.