Thinking about becoming a hard money lender with a cashout refi
Hey everyone,
My parents are actually looking at this not me. Their primary home is already paid in full (valued at $150k). My parents and I were wondering if taking out a mortgage against their home and using that money to lend to investors is a good investment. They would only take out about 100k that would require roughly a $650 monthly payment.
First question is what kind of returns could we expect? and what kind of terms are traditional here in the Charlotte NC area. My dad would like to partner with a group of hard money lenders and not really screen candidates himself so he would be more of an investor.
I have seen this question in the forum before but I was wondering if anyone is the Charlotte, NC area is currently doing this and whether it is sustainable. Seeing how rates may soon start going up it may be best to do this earlier than later if it is in fact a good idea.
Thank you in advance.