We offer a first position mortgage lien to the lender and of course we insure the property and name the lender as an additional payee should something happen to the property. The biggest difference is that we pay higher interest rates to private lenders than banks pay to consumers, often 3-5 times higher than bank rates. By becoming the bank, you have the potential to reap profits just like a bank would. It is a great way to generate cash flow, also known as passive income, producing a predictable income stream while having your principal secured by real estate and protected by insurance.