Remember these are short-term bridge loans.  It’s not the cost of money that counts, but the availability!  Due to the credit crisis, many of our borrowers work with motivated banks/lenders and/or private sellers.  Our borrowers will typically make very low offers on real estate to these individuals and/or entities by promising them a sure close within 21 days or less. In many cases, our borrowers have washed out the high cost of this financing with their lower accepted offer.  As in the case of cash transactions, our buyers are able to negotiate much better terms with sellers, especially when dealing with quick financing that is not subject to standard qualifying methods.  Another good example of this is commonly known as a pre-foreclosure “Short-Sale“ where a bank settles for less than owed on the property to guarantee a quick sale and to avoid either a lengthy foreclosure process and/or additional marketing expenses on their behalf.