Hard Money Investors

Financing, Hard Money Lenders, Private Money
1

I’ve been real estate investing for a little over 2 years now, and I find myself with not enough cash in the bank for a down payment on a property I’d like to buy (no, I don’t do foreclosures, door knocking, etc). But its a sizeable enough amount (20k-75k) that I don’t want to put into a CD or savings. Is anyone an active hard money lender that would be willing to share their thoughts on the subject, and recommendations for brokers (yes I have looked at the links on this site for hard money brokers)? I am in Las Vegas. Thanks in advance for your input!

2

After being sent a message and re-reading my post, I want to make sure that it’s clear that I DO NOT want to borrow money. I am looking for advice on the pitfalls and traps of lending money. Thanks!

-Kenley

3

Come on, someone has to have some experience as a hard money lender.

4

I will give the same answer I gave to someone else that asked a similar question.

Don’t lend what you cannot afford to lose! The smaller the loan amounts the greater the risks. Smaller margins of error and less secure collateral due to neighborhood conditions.

I think that you are better off using those funds for your own down payments/repairs on larger projects that you can goto the bank or other lending source to borroow the balance of the funds.

5

Thanks for the reply DHLC!

I agree with the “don’t invest what you can’t afford to lose” statement. However, I am curious that someone in the HML field would be, it appears, against an investor putting money into that market. Since there are investors who invest in this market I would imagine that there is money to be made. Do you, or anyone else reading this, know investors that are the unhappy with the market that they won’t invest there? Conversely, do you know of any investors who are happy with that market?

6

I am happy with the amrket. I out my money out month after month. However I am well aware of the risks and I am in a posiition to take a loss or two. When I started…that was not the case. I made many mistakes that cost me more then I felt I could lose.

Good luck!
Rob