Hard Money

[Daniel Peavey]

Thinking of being a hard money lender

1. What is interest rate?

2. What is best way to do contract to secure loan??

[George Krajacic]

Hi Daniel,

You got excellent advice already, however I would suggest to you to attend at least 10 different Investment Clubs meetings in your city. You will meet people with similar interest that are willing to share and put you on the right path. After attending 10 meetings you might be confident enough to start making loans. However, if you are still not confident enough then you can partner with experienced hard money lender and learn what you need to know. The partnership might be set up where you get all the interest on your portion of your funds and HML gets all the points but he is obligated to teach you the process. Remember, even when you learn all the technicality of making the loans you have to also know the real estate that you will be making loans on. You have to know the value of the property in question and how much money it will take to fix it up. Only then can you decide how much money you can safely lend on the property and still have reasonable safety cushion.

Good luck,

George Krajacic