Graduating from Flipping to Lending. What do I need to know?
I seem to have an opportunity to expand into Hard Money/private lending here in Colorado Springs and I am looking for some pointers to ensure I don’t fall into avoidable traps and beginner mistakes or become victim to scammers.
I have my real estate attorney on my side and an attorney friend who both have experience writing hard money contracts. However, they are neither real estate investors nor lenders themselves.
I am looking for ways that will generate returns similar to what I am getting on my flips, also interested in keeping title in my name or third party. Some skin in the game from the borrower is a must but I am unsure what is working out there. I will also be evaluating all the properties personally.
I know this is not enough info to evaluate a deal. However, I am only looking for general terms and conditions that private lenders are using successfully. Is it even legal/ethical to maintain title? What about rehab costs? Are there other creative ways I should be considering?