Real Estate Agent · Ocala, FL · Member since 2015 · 29 posts · 14 votes
As I look around on BP, and listen to podcasts, I hear a lot about private lenders and hard money lenders. Some of the podcasts and books talk about how "you can be the lender." I can be, that is. But can I be? Is it something that is a doable business for an individual?
I see posts from HMLs and PLs. Most if not all I've seen have lending corporations. The directory is all companies who do loans from $50K to $10 million.
I have some money. I'd like to earn decent return on it, and like the idea of financing real estate rehabs, either as a partner (the money), private lender, or hard money lender. But is that a field now taken over by corporate entities? Is there a place for the individual lender?
Investor · Dallas, TX · Member since 2014 · 2k+ posts · 1k+ votes
8y
Absolutely you can be a private lender. If you have capital or the ability to acquire capital cheaply, you can be a lender. I have partnered with a gentleman in CO for rehabs. The first couple of deals, we did a 60/40 split, with him getting 60% of the profit, because he was taking all the risk, and we didn't have a track record together. Afterwards, we moved to a 50/50 profit split on most deals. He would either put up all the capital for the purchase & renovation, or he would provide the initial capital and the additional financing. Unfortunately, he had a change in his life that has tied up most of his liquid capital, but that was just an example.
Bottom line is that there are plenty of folks right here on BP making a killing financing deals.