Want to enter hard money lending in California

[Patricio Acosta]

I'm interested in entering the hard money lending business. As a flipper in San Diego CA, I've loaned my own money to fellow flippers at approximately 2 points and a 12% interest rate. I unintentionally became a hard money lender and realized it offers good returns with collateral that’s relatively easy to sell if needed. Entering this business makes sense for me because I know many fellow flippers and I know how to value homes and projects. 

This experience has motivated me to expand into hard money lending, but I don’t have enough capital to scale. I'm curious—where do most hard money lenders source their funding? Is it primarily from private investors, family and friends, or larger funds that lend to hard money lenders?

I’d love to explore the possibility of partnering with a fund or securing a credit line to expand my reach and find more clients.