Is there anything out there that will tell you how to become a hard money lender? I am just kicking the idea around. only for small projects. Any input will be great.
There are a couple of ways you can get your “feet wet” as a hard money lender (I am unaware of any publications/courses that cover this area), here is one:
a. Invest your money with a hard money lender. Many HMLs allow and encourage inward investments from private investors (private investors are the lifeblood of HMLs). By way of being an active investor in a HML’s portfolio would avail you a look “inside” the world of hard money lending and give you some ideas of procedures, regulations, etc.
Regards,
Scott Miller
It is very easy to be a hard money lender but would take too long to explain it here,if you want to contact me by email I can give you some pointers,also need to know what you expect to receive,in other words what yield for the money that you have and I may be able to come up with some specific ideas for you and there are ways to make money within the field without having to deal with tenants,resale,etc. I can explain that to you also,but again I need to know what perimeters you are working with to be realistic about what I say to you!
Federal and local compliance, RESPA, truth in lending, etc. are just some of the considerations one needs to undertake if one wants to be HML.
I wouldn’t say it is impossible, but I wouldn’t say it is easy either.
Why don’t you post your ideas for the benefit for all in this forum?
Regards,
Scott Miller
Are you speaking to me?
I know all there is to know…I was curious about the “easy” plan the other poster claimed to have.
Regards,
Scott Miller
My comment was directed to Mach. Sorry for any confusion.
Thanks everyone. Would would you expect your return to be in being a HML. another thing is would I have to lend money to a HML company? I only have $100,000 to play with now so that is not big money I’m just checking my options just in case that grows. I don’t know the first thing about it I never used Hard money lenders. Sorry I don’t have time to answer everyones email I’m in the process of moving, and I won’t get back on track for about 2 months if I’m lucky.
You can also lend money on prosper.com. At least there you can pick and choose who you want to loan to based on their credit, how much they need, why they need it etc. You can also pick what rate you want to lend at, oftentimes they get up into the high teens/low 20’s on loans. You can divide up that $100k any way you like and break it up into hundreds of smaller chunks to limit your risk. Loans get financed on there from dozens of different people, you would be one of many financing a loan. You can do as little as $50 and as much as $25k per loan.