How to be a hardmoney lender - without the work?
Hi everyone!
It recently came to my attention that my grandfather has way too much money sitting in a standard savings account earning a pathetic less than 1% interest rate. My grandfather's gears turn in money and I'm sure he'd be ecstatic if I found him a better place for his money. I've talked to him about stocks but he knows nothing about them and naturally he's very reluctant to invest in stocks after the great depression and 2008.
I suggested to him the option of being a hardmoney lender. With returns around 10% and the safety of the loan being secured by real estate he's taken the bait. What I need to know is what options are available to give him access to hardmoney lending without the task of screening and policing so to speak the investors themselves. I'm sure there are companies out there that provide this service. Something like a property management company where they screen the investors that need the loans and help with setting up all the paperwork and generating the deeds of trust etc.
We live in Southern California. On 1 hand a more local "outfit" may be more comfortable. Someplace where he could deal with people face to face so he feels more secure. Somewhere we could go to throw books at people should his money disappear and the deed of trust never arrive... That sort of thing. But on the other hand, if there is a company like this that does business nation wide, it may be better so that he could use a smaller investment initially to test the waters so to speak - somewhere that 25 or 50 grand could fund an entire rehab as opposed to SoCal where real estate is significantly more expensive than the rest of the country.
Comments? Suggestions?