Should I become a HML?

I have some money I can loan to investors. What should I do to cover my butt? I have a guy offering 15% for 3/6 month loans. Is it worth it?

Another option you have to make bigger returns is to become a financing partner.You provide the funding for the projects and then when it is complete you get your money back plus 1/2 the proffits made from the deal.

John Petrich

15% with 3 - 4 points upfront, maybe.

How much money do you intend to put on the street?

Funding a couple of loans doesn’t allow you to truly mitigate your risks—one loan defaults and your hard money business is out of business…

As to your rate/term suggestion, there are already progams that; 1) have a sub 15% IR, 2) have a similar point structure, 3) Have longer amortization schedules.

What’s your USP (unique selling proposition)? When a potential borrower is presented with your offer and offers that I referenced above, why will they choose you over the competition (this is what I meant by USP).

I don’t know if intend to compete on features, price or a hybrid of both, but it pays to survey the competitive landscape before you sketch out your offer.


Scott Miller

What’s your background? I think you definitely want to loan to someone with a track record. You should know the business so you can evaluate the risk too. You need to realize if they are blowing smoke up your butt with a bogus appraisel because their buddy did it.