Individual doing hard money lending in California
Hi, I'm in the process of obtaining my CA Broker's License to start my hard money lending business, but I have not yet gotten it. I have a contact in CA and he is a flipper (with his own LLC) that needs money to finance a property that he will soon be in contract for. This is going to be a traditional hard money loan:
I'm using my own capital from my own bank accounts - no brokering involved.
The interest rate will be above 10% on an interest only loan.
I have not made any other loans this year.
It will NOT be for personal, family, household, or residence use. It is purely commercial and business purpose.
This will be a loan secured by first deed of trust.
Can I make this loan as an individual w/o a broker's license? I am not considered to be in the business of making loans - I have a different job. Can I charge points or loan service fees or can I only receive interest as compensation?
Thanks in advance for the answers!