Question: Can we use private financing to buy real estate?

Answer: In theory, yes. In practice, not really because the odds against private financing are substantial. In 1995, according to the National Association of Realtors, 68 percent of all first-time buyers obtained financing from mortgage bankers, 25 percent from commercial banks, 4 percent from S&Ls, 2 percent from "other" sources, and 1 percent from private investors. See Targeting Prospective Home Buyers and Sellers (1995 edition), page 29.