Becoming a Hard Lender vs Flipper / REI

1 Reply

Hey guys, 

Instead of creating a tradiional post, i decided to make a video message to try something new.

https://youtu.be/vmt6VIMQ5Zg

I'd like to hear your thoughts on becoming a hard lender vs staying a real estate investor!

I like it .... HML can be a great career depending on the state you may or may not need an NMLS license ( if your going to do any volume) or like CA you can legally lend with a RE broker license.

And of course there is a few ways to do it... you either have no leverage IE your own cash.

Or a portion of leverage IE a credit facility with a bank ( Like I have) or

Hundred % leverage by brokering other investors funds.

But like anything RE related its not as easy as you make it out to be... loans go bad lenders lose on deals when their borrower goes TU markets constrict causing loss's right now we are in a very nice lending period of rising values and Borrowers that have been trained to bring in CASH equity... prior to 08 it was common place in the industry to do all your HML based on LTV... and that led to massive loss's for lenders in the down turn both institutional and HML lost

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