Starting a Private Money loaning business.
Member since 2023 · 8 posts · 2 votes
Starting a Private Money loaning business.
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Lender · Los Angeles, CA · Member since 2009 · 1k+ posts · 2k+ votes
3yThere are a lot of options to get into lending with little or no money, @Account Closed.
One way is to become an affiliate of some of the larger lenders, which can easily be found through Scotsman Guide, the member directory at AAPL, or even on BP. Most will have a website link to their affiliate program. Here, you act as a commissioned salesperson and get paid for the business you bring in which closes. Depending on their criteria and your borrower’s needs, you can and should represent many companies. I suspect many of those who call themselves lenders on this board are really affiliates.
If you have enough money for even just a few loans, you can hypothecate them individually or collectively. In this case, you re-lend the money that others are willing to loan to you using your loans as collateral. You’ll earn the spread between what you’re lending at and what you’re paying your lenders. Understand that depending on your state, this might require a security exemption, which is something you should check with your attorney.
You can originate loans using white paper offered by many larger lenders. I personally find this approach deceptive since the borrower doesn’t know who their lender really is, but it’s legal in many states and seemingly widely used.
Another option is to become a broker and originate loans for other lenders.
Once you become successful and show that you know how to make money by lending money, others will ask if you accept investors. If you know enough of them, you can form a syndicated mortgage pool and lend their money, taking your profit as fees. Local real estate clubs are a good place to meet like-minded investors.
Don’t try to do everything online. If you haven’t considered it, become a member of the AAPL and attend their convention. You’ll meet many lenders, lawyers, and service providers in all shapes and sizes. There will be lots of money and creativity in the room.
7 Replies
- 3yRobin SimonBusiness MemberLender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
Do you have experience in real estate, either as an investor/flipper or working for a hard money lender or other such company? Having a track record is really important for this business, especially for raising a pool of funds from investors that will trust you with their money in a risky business
Harpoon Capital514 Reviews - Member since 2023 · 8 posts · 2 votes3y
Quote from @Robin Simon:
Do you have experience in real estate, either as an investor/flipper or working for a hard money lender or other such company? Having a track record is really important for this business, especially for raising a pool of funds from investors that will trust you with their money in a risky business
Yes
- Lender · Los Angeles, CA · Member since 2009 · 1k+ posts · 2k+ votes3y
There are a lot of options to get into lending with little or no money, @Account Closed.
One way is to become an affiliate of some of the larger lenders, which can easily be found through Scotsman Guide, the member directory at AAPL, or even on BP. Most will have a website link to their affiliate program. Here, you act as a commissioned salesperson and get paid for the business you bring in which closes. Depending on their criteria and your borrower’s needs, you can and should represent many companies. I suspect many of those who call themselves lenders on this board are really affiliates.
If you have enough money for even just a few loans, you can hypothecate them individually or collectively. In this case, you re-lend the money that others are willing to loan to you using your loans as collateral. You’ll earn the spread between what you’re lending at and what you’re paying your lenders. Understand that depending on your state, this might require a security exemption, which is something you should check with your attorney.
You can originate loans using white paper offered by many larger lenders. I personally find this approach deceptive since the borrower doesn’t know who their lender really is, but it’s legal in many states and seemingly widely used.
Another option is to become a broker and originate loans for other lenders.
Once you become successful and show that you know how to make money by lending money, others will ask if you accept investors. If you know enough of them, you can form a syndicated mortgage pool and lend their money, taking your profit as fees. Local real estate clubs are a good place to meet like-minded investors.
Don’t try to do everything online. If you haven’t considered it, become a member of the AAPL and attend their convention. You’ll meet many lenders, lawyers, and service providers in all shapes and sizes. There will be lots of money and creativity in the room.
- Member since 2023 · 8 posts · 2 votes3yThanks for your words! I will check this out!
Quote from @Jeff S.:
There are a lot of options to get into lending with little or no money, @Account Closed.
One way is to become an affiliate of some of the larger lenders, which can easily be found through Scotsman Guide, the member directory at AAPL, or even on BP. Most will have a link to their affiliate program. Here, you act as a commissioned salesperson and get paid for the business you bring in which closes. Depending on their criteria and your borrower’s needs, you can and should represent many companies. I suspect many of those who call themselves lenders on this board are really affiliates.
If you have enough money for even just a few loans, you can hypothecate them individually or collectively. In this case, you re-lend the money that others are willing to loan to you using your loans as collateral. You’ll earn the spread between what you’re lending at and what you’re paying your lenders. Understand it might require a security exemption, which is something you should check with your attorney.
You can originate loans using white paper offered by many larger lenders. I personally find this approach deceptive since the borrower doesn’t know who their lender really is, but it’s legal and seemingly widely used.
Another option is to become a broker and originate loans for other lenders.
Once you become successful and show that you know how to make money by lending money, others will ask if you accept investors. If you know enough of them, you can form a syndicated mortgage pool and lend their money, taking your profit as fees. Local real estate clubs are a good place to meet like-minded investors.
Don’t try to do everything online. If you haven’t considered it, become a member of the AAPL and attend their convention. You’ll meet many lenders, lawyers, and service providers in all shapes and sizes. There will be lots of money and creativity in the room.
Im guessing if I bring a million dollar loan to a lender as an affiliate I'd get paid the 2% rate that lenders get paid. - 3yJoe S.Pro MemberInvestor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
Quote from @Jeff S.:
There are a lot of options to get into lending with little or no money, @Account Closed.
One way is to become an affiliate of some of the larger lenders, which can easily be found through Scotsman Guide, the member directory at AAPL, or even on BP. Most will have a website link to their affiliate program. Here, you act as a commissioned salesperson and get paid for the business you bring in which closes. Depending on their criteria and your borrower’s needs, you can and should represent many companies. I suspect many of those who call themselves lenders on this board are really affiliates.
If you have enough money for even just a few loans, you can hypothecate them individually or collectively. In this case, you re-lend the money that others are willing to loan to you using your loans as collateral. You’ll earn the spread between what you’re lending at and what you’re paying your lenders. Understand that depending on your state, this might require a security exemption, which is something you should check with your attorney.
You can originate loans using white paper offered by many larger lenders. I personally find this approach deceptive since the borrower doesn’t know who their lender really is, but it’s legal in many states and seemingly widely used.
Another option is to become a broker and originate loans for other lenders.
Once you become successful and show that you know how to make money by lending money, others will ask if you accept investors. If you know enough of them, you can form a syndicated mortgage pool and lend their money, taking your profit as fees. Local real estate clubs are a good place to meet like-minded investors.
Don’t try to do everything online. If you haven’t considered it, become a member of the AAPL and attend their convention. You’ll meet many lenders, lawyers, and service providers in all shapes and sizes. There will be lots of money and creativity in the room.
Typically any time you write something I try to read it intently. That was some pretty meaty content you just delivered.
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