How to become a hard money lender?

For individuals or groups that are interested to become a hard money lender, you want to take the following actions:

1. Know the market that you want to invest in.
2. Investigate the criteria or basis of what other hard money lenders are conducting for guidelines, underwriting methods and their forms of due diligence.
3. If you are interested in lending in a area that you are not familiar with, then the best option would be to find a broker or other investor who has the market knowledge of that area.

Investment in hard money is not for the feint of heart, therefore the risk involved can be fairly higher then investing in stocks, bonds or other types of securities, but with a knowledgeable team and proper underwriting procedures you can hedge your risk and make a highly profitable return on your investment in hard money.

Typical returns for hard money investment are:

1. Annual rate of returns are upward of 10% to 15% per year.
2. Points upfront; Typically hard money investors will take an upfront fee ranging between 1% to 3% of the loan amount.
3. Occasionally some investors may build in a prepayment penalty or interest guarantee for the first 6 months for the term of the loan.

Many investors are wondering how to become a hard money lender, but are still in question or unclear with the dynamics of how to initiate the process. Your best option will be to refer to a professional that is seasoned, reputable and informative.
If you still have difficulties in finding a professional with the above mentioned character traits, please don’t hesitate to reach out to us directly and we will be happy to provide information.
Call us now 818-308-4443