Becoming a Hard Money Lender
I was approached by my Dad today while I was discussing with my brother about using a HELOC to invest in rental properties. He said that I could use the HELOC he has on the house to purchase properties if I needed money. He was offering it as I would have access to it with no money in it for him.
It is an interesting proposition as he has a much higher limit than I would have with my own HELOC I am currently in the process of opening. I could pay him back the interest plus a profit as he is retired. I guess I want to be as informed as I can be on both my end of borrowing any money and his end on lending it to me.
What would be required of him to lend me money so I could invest in real estate and how could he protect himself? Would the bank care hes lending money on his through his HELOC? Are there rules and guidelines to becoming a hard money lender?
Does anyone have experience with a similar situation? What did you do and how did it work out?