Private Money lending in CA documents

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Anyone doing PML in CA that would be willing to share the documents used between you and the borrower (feel free to omit any confidential information)?

Other than a first lien position on the property, which can be difficult in CA depending on LTV, do you use anything else for collateral?

What are your typical loan amounts and terms?

Thank you so much!  Still trying to get a handle on this. 

@Lisa Eckman There’s a really good post on this topic that has a list of documents you’d need here: https://www.biggerpockets.com/forums/49/topics/413352-private-lender---forms-required

The lender provides the forms, but the borrower typically pays for them.

Personally, I’d recommend only loaning in first lien position, especially as a new lender.

As for typical loan terms, that's going to depend a lot on whether you decide to go through a broker or not. If you lend directly to the borrower, you're going to be limited by usury laws in California (max 10% annual interest rate). However, the usury laws do not apply to loans made or arranged by a California-licensed real estate broker and secured in whole or in part by a lien on real property. So if you have the loan originated through a broker, you can charge more than 10%.

I know, lots to think about. 

You might start by going to local meetups in your area and getting to know other private/hard money lenders who are actually lending and talking to them. 

Good luck!



@Kyle J. Thanks for the link to the post and the info provided. Where are you in northern ca? That’s where I spent most of my life, although I’m in so cal now. Good to know about the broker part/interest rate. I am a licensed broker. Might as well put it to some use!