What license does a Hard Money Lender need?

[Frank Hinck]

I'm looking for a Hard Money Lender (HML), I want to make sure they have a license, but some deep googling doesn't really help me determine license they would need? Looking to some State websites, I've seen some things about Industrial Loan and the Nationwide Multistate Licensing System (NMLS), should they be bonded/insured? The American Associate of Private Lenders seem to just be an industry group - not a legit license. Any help would be appreciated!

[Jay Hinrichs]

Originally posted by @Charles Carillo:

@Frank Hinck

Not sure about "many states" but for example in Florida; you are required to have a license if you are:

"
(a) Representing to the public, through advertising or other means of
communicating or providing information (including the use of business
cards, stationery, brochures, signs, rate lists, or promotional items),
by any medium whatsoever, that such individual can or will perform the
activities described in F.S. 494.001(23).

(d) Advertising, soliciting, or conducting business through use of a
name, trademark, service mark, trade name, Internet address, or logo
which indicates or reasonably implies that the business being
advertised, solicited, or conducted is the kind or character of business
transacted or conducted by a licensed mortgage lender or which is
likely to lead any person to believe that such business is that of a
licensed mortgage lender.

"

As I mentioned earlier, I would speak to an attorney first that specializes in this law.

Agreed.. many states have a carve out for NON owner occ commercial loans.  Most states do in fact.

and then the carve out for mom and pop loaning a few deals a year from their IRA there are carve outs in many states for those.

checking in with the state agency regarding your situation is free and you get it from the horses mouth..