Page 23 of "Preforeclosures & Private Lending" ebook:

all the paperwork, waiting six to eight weeks to see if you’re going to get approved and all that. Well, with a private lender, you been paying them fifteen percent interest, and like I said earlier Jeff, sometimes my lenders get their principle and all the accrued interest based on the period of time that I’ve had the property. They get that back in a lump sum. So they are getting back all the principle, plus the interest. In effect, then they get an almost – if not a true compounding, they are going to be reinvesting with me and that’s interest upon interest.

Jeff Kaller
Absolutely.

Alan Cowgill
Just think about it, I sell a house and I make a profit; it’s my paycheck. It’s how I get paid. The underlying mortgage is freed up which is the lender money. I go out and I buy another house and then I get another paycheck and they get a huge interest payment. It’s my finding a pot of gold at the end of a rainbow, it’s a cookie cutter business.

Jeff Kaller
Absolutely, it is a true semiotic relationship where they benefit, we benefit and the money is extremely safe. So, I have to give you an amen to that. It works well in this business. You know…so many people have not brought this part into their business. I used to be the exact same way. I guess it was a certain level of avoidance from me, just because I didn’t know understand how to go about asking people. I didn’t know what to say, I didn’t know how to approach people. I guess I just didn’t have enough confidence to know that really. You know what I have here is a vehicle that provides all my lenders with a lot of money. The interest rates for them are great and it’s completely secured, so now I look at it a different way Alan, saying these people are really searching for an opportunity like that. It’s just not out there in the market place. So, you just realize how much of an impact you have on being able to store money for them.