Seeking Advice: Starting a Private Lending Business for Non-QM Clients and Underserve

[Michael Adamo]

Hi BiggerPockets Community,

I’m in the early stages of launching a private lending business and would love to get some insights and advice from those who have experience in this field. My goal is to focus on non-QM (Qualified Mortgage) clients and underserved markets.

Here’s what I’m working on:

- Target Market: Primarily focusing on underserved markets with non-QM clients.

- Business Model: Looking to provide flexible financing solutions for individuals and businesses who may not fit traditional lending criteria.

- Regulatory Compliance: Ensuring all legal and regulatory requirements are met for private lending.

Questions for the Community:

1. What are the essential first steps I should take to start this business from scratch?

2. How do I effectively build and manage a team for a private lending operation? What key roles should I prioritize?

3. What are the best strategies for securing funding and investment for a private lending business?

4. Are there any specific compliance or regulatory challenges I should be aware of in California?

5. What technology or tools do you recommend for managing private lending processes and client relationships?

6. How can I effectively market my services to attract non-QM clients and underserved markets?

7. What are some common pitfalls or mistakes to avoid when starting a private lending business?

Any advice, resources, or personal experiences you can share would be greatly appreciated!

Thank you in advance for your help!

Best regards,

Mike