Becoming a Hard Money Lender

[Trevor Dominique]

Hello,

I am a new real estate investor, and a currently now co-own 5 units worth of rentals in Northwest Ohio. My partner and I currently have about 100k in funds available, so we would like to test the waters in hard money lending as opposed to just letting that money sit in cash. 

I am looking for any general advice for starting out. What documents do I need to request from my attorney? What resources are best to determine points and interest rates to charge on these loans? Is it reasonable to give hard money loans to flippers who are not within close proximity to me?

Any advice would be appreciated. Thanks!

[Account Closed]

Trevor, you can start by contacting area HMLs to get a feel for what they are charging.  As far as what documents are needed, that question is best answered by a local attorney.  Regarding proximity, keep in mind you, or someone you hire (and trust) will need to inspect the properties prior to closing and along the way as repair draws are made.