Raising Money to lend

[Angelo Webb]

Is it legal to raise money then turn around and lend it? For instance If I know a investor who is looking for funds, backed by income producing property. Terms: 15%, 18 months, with balloon payment after 18 months. Could I get a group of people and raise the money pay the group 10% and pocket the 5%? 

[Travis Sperr]

When you are raising money from others to lend you need to be licensed to do so - you are offering a security. If you are investing or lending your own money there is typically not a licensing requirement, depending on how much business you are doing - always check with state and federal laws in either case.