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Author Topic: Soliciting advice on becoming a hard money lender  (Read 1788 times)

Offline rvestor

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Soliciting advice on becoming a hard money lender
« on: December 10, 2006, 09:46:53 pm »
I have been a real estate investor for some time and would like to start up a hard money lending company.  I also have past experience as a real estate broker and builder/rehabbing.

I will be investing my own capital in the deal, but need more capital sources.  Does anyone understand the issues associated with hard money lending start up companies or any issues associated with attracting or securing investors for the process?

We donít wish to run afoul of any regulations.  We are lending in first lien positions only with leins being held jointly with our company and the contributing investor.  For the first two years, we will be offering 12 to 13% interest returns to investors and 3 to 4 points for loan terms of 6 to 7 months with a 12 month maximum.  All loans will be subject to a 70% ARV LTV unless individual investors wish to seek more risks.

We will acquire, rehab and resale any property that we have to take over and will split profits with the contributing investor at 50/50.

The lending area is anticipated to be initiated in the Florida Panhandle, then gradually outward.

Does anyone have a good idea concerning how to attract capital for this venture and any issues we night have with any solicitation or offerings for capital investors?
« Last Edit: December 11, 2006, 10:14:29 am by rvestor »

 




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