Honest question -- why would the real estate developer pay you 8% for your cash instead of borrowing from a traditional lender at a much cheaper rate?
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Honest question -- why would the real estate developer pay you 8% for your cash instead of borrowing from a traditional lender at a much cheaper rate?
He does it because he can then make a cash offer and beat out financed offers. Once he gets the property earning a return he can easily refinance it and use the cash to pay us back.