Becoming A Short Term Lender?
I have some money to invest but just recently started thinking of being the "bank" instead. I've never looked into it so I don't know much about it from the lender's pov.
All I know is I am interested in doing short term loans so I guess that would make me a hard money lender?
Some questions I have are:
- Would 3-6 month loans be feasible?
- Can you make good money doing this if you consistently lend compared to owning a buy and hold prop?
- Is this better or worse than buying and holding or can they not be compared?
For my last question, the reason I'm wondering if you can compare the two is because I don't know if I should pick one over the other. I'd assume holding a rental property long term would be better for net worth over short term lending but maybe income is better as a lender? I don't know. I'm unsure if this decision would be based more on a "whatever fits your goals" kind of thing.
I appreciate any and all feedback :)
cheers