Becoming a personal hard money lender?

[Dustin Lyle]

I was just pondering my ability to become a personal hard money lender, and what might be required of me? Now Im not trying to Become a PML investor for another person's company, or use my Self directed IRA... Simply loan my personal funds OR funds that I may have access to. Sort of like a Loan Shark but not really... well yes really... But loaning against Real Property. If anyone has experience in this I am open ears... or in this case open eyes.

PS I've been "google"ing the subject and really all im finding on the specific subject is about how "private" private lending is, thus making the information private or at least, expensive.

Thanks,
Dustin

[Jon Holdman]

It may be easier to work with a broker than to do it directly. If you can find mortgage brokers in your area that do hard money loans,and let them know you have money to lend, they will do the leg work. You would typically get to inspect the property before you make the loan, and would decide on the value yourself. You'll want an appraisal that considers the repairs. You would inspect the property as the work progresses and would release the rehab money. You'll get a deed of trust or mortgage, and a promissory note from the borrower. You collect the payments, and the payoff when its down. Do all the paperwork ONLY through a title company or lawyer.

If you want to do it directly, just go to your local REIA and let it be known you have money to lend.