Is Private Money a good loan?

As a Private Money lender for the last 20+ years I have been asked many, many times - "Is that a good loan?" Initially i would do the analysis of the house payment compared to 30 year fixed rates and the costs divided by the number of years they'd have the loan, blah, blah, blah. Finally I just told them the simple truth: it's the only loan you can get. That's a good loan.

I'm not being flip here, but when your home loan application has been turned down by the 30 year fixed rate lenders, the credit union, the bank you've been at for umpteen yeras and your family won't loan you money, the truth is the only program left is private money. And that requires you have equity and an ability to repay the loan (if it's your principal residence).

As of this date 2010 the lending standards nationwide have become so overly restrictive that to g et a loan almost requires an act of Congress. The Feds own most of Fannie Mae and Freddi Mac and are trying to tighten up the standards to help the housing industry but they are actually messing up the works.

Private money loans are based largely on equity. The most you will get is 70% of the value of the property. If you have bad credit, some problem with the property, are a Contract trying to buy a dump house, need fast cash, etc. and just do not qulify for a conventional loan then Private Money is the loan for you.

So....you tell me, is this is a good loan?