Updated about 7 years ago on . Most recent reply
Hard Money Lender
Hi All,
My realtor and I have worked together on multiple properties for multiple strategies. I trust him. Today he called and asked if I would be interested in being a "hard money lender." I believe that is the proper term? He has a client in need of one, knows our situation and asked if we would be interested.
I have no idea.
Again, I trust my realtor, don't know about money lending (as me being the lender), nor do I know the potential borrower. I have read some posts on BP, feel more knowledgeable than I did a few hours ago.
What are the questions I need to ask?
What are the things I need to look into?
Any and all BP advice would be greatly appreciated. Thanks in advance.
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#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
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#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
@Gary Schmalz A $10K return on a $180K investment for three months amounts to 22% interest. Have you verified with an attorney that's acceptable under relevant state laws?
What happens if they can't repay you after three months?
Are you applying everything from my first reply? EVERYTHING?