New Member Looking into Hard Money Lending

[Mayokun Abiola]

Hello all. Its nice to be here. I'm looking into starting out in Hard Money Lending Niche. I'm very opened to be mentored. If you are into hard money lending and willing to mentor me, please reach out. I live in Canada. Thanks

[Jay Hinrichs]

Quote from @Mike Klarman:

If you want to be a lender, you need to consider the risk/reward. Let's say you lend someone 100k at 11% APR, interest only payments and you charged them 2 points. That means you make 2k in origination and then 11k/12 = $916/month.

Let's say they hold it for 5 months = $4,580 + $2,000 origination = $6,580 return on 100k so about a 6.58% return and your risk for that return is 100k, cause the deal you back can go sideways.

There's a much safer way to make a better return.  I'll DM you.

not sure of your math there  if the loan pays off in 5 months the return apr wise is quite a bit higher