Wanted to raise money to fund hard money loans. Mostly the foreclosure bailouts and fast money at lower LTV’S. I’ve been in the mortgage business for a while, but the hard money lending is new to me.
Am I limited to a specific amount of loans per year to fund, even if im not selling to wallstreet or using private money?
Currently dont have a bankers license, do I need one?
I breifly looked into becoming a HML a while ago. The way I understood it, hard money is vastly unregulated. In my state I would of had to get a mortgage lender license and be bonded but other than that, your free to do whatever you want. Also in my state there was no limit to the number of loans I could fund. Couldn’t tell you any of the regulations for raising the money to fund. I was going to go in with my own money and a few very wealthy friends.
Raising private, “unsophisticated” funds might get you into complications with the SEC as well. As I’m sure you know, you’ve got a lot of homework to do. Short term loans are where the biggest returns are. Especially with rehab loans, you may loan the same money out 3 or 4 times in a year while collecting double digit returns each time. The points and fees alone are enough to pay the overhead of a staff and office.
danny likie your posts to the point and on the up and up
Thank You Danny. I appreciate your input.
I’ll keep you in the loop.