Becoming a small time lender in Ohio

[Alex A.]

hi there I live out of state and looking to become a small time lender in Columbus ( loan's lesson 50,000). I live out of state and am not licensed. Im interested as it seems somewhat safe and not large checks. I don't want to lend on primary living locations only investment properties. I have heard the regulations make doing even small loans difficult .  Any guidance if this is true? If so what are the most cost-efficient and simple ways to abide by the law? I'm not living in Ohio as my family won't move. Thank you in advance for your help

[Ham Merritt]

@Alex A. In order to do this you, for the most part, would have to be a hard money lender or a portfolio lender (Sub Prime). Conventional lending is not a good fit for what your trying to do. The federal government has a cap on what conventional lenders can charge. This being said, once the loan amount dips below a certain number, all the profit is taken out of it. Further, if the loan is really low, it will not pass the quality/qualified mortgage rule. If you google QM Mortgage you can read up on it a bit. Bottom line is, it is hard to get a conventional loan under $50K as the lender will be taking a large hit on it and basically giving you the loan for free. I don't know of any lenders working for free that are still in business. Hope this helps.