Gator Lending Contracts

[Aidin Flores]

Hey everyone!

I recently turned 18 and I am looking to begin my real estate journey by becoming a gator lender on EMD. My goal is to build up capital for a down payment on a house hack by the time I graduate college and I think this can be an effective way to do that. The only issue I am running into is obtaining the necessary contracts I need to stay protected as a gator lender.

Are there any gator lenders here that can give me advice or that have access to those contracts? Thanks!

[Bill B.]

Don't forget the "accidental defaulters". You are lending to people who have ZERO dollars. They can't even come up with $500-$2,000 EMD. So they are not going to follow through on their purchase. Let's say 10 times it fails and you get your money back. You're up what $500 of you can get the. To pay 10% for a 30-60 day loan and they actually pay?

Now the 11th time they let a deadline go by, or the seller's realtor is smart enough to change a term because they can tell the buyer doesn't have any money and isn't a real buyer. So they lose their EMD. What do you think your chance of getting your $500-$2,000 back? It might not be zero, but it's close.

What if the contract gets cancelled and the "client" gets a check? A person in that financial position might consider it found money and spend it. (After all the EMD is going to have to be in their name. I can't think of one seller that would consider an offer where the EMD didn't come from the "buyer".)

Ps. Make sure you have all the licenses, qualifications, permits, and legal requirements filled out in full. Otherwise your “client” is going to get free representation from some “help the poor foundation” and they’re going to invalidate your loan.