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Updated about 1 year ago on . Most recent reply

Small Lender lending with a 401K
I have a question. I am a small lender just lending to investors for flips and refi's. I need to ask anyone that does the same type of lending a question. How long do you hold money for if someone asks you for a loan and you hold the amount that they need? My investors usually close within a month but recently had someone doing a short sale so the process took two months just for them to agree on the sale amount with the bank. I havent charged any fees in the past but I feel my money is just sitting there not making any money. How long do you hold? Do you charge fees during the hold time? How do you handle these situations. I know banks hold money when approved for loans but that is different than me. I also dont know if I am considered a private lender or hard money lender. I think I am a private hard money lender! :) Thank you for any input!
Most Popular Reply

- Solo 401k Expert
- Anaheim Hills, CA
- 6,264
- Votes |
- 17,872
- Posts
I do not wait for the borrower. I aim to deploy funds as soon as I have them available. I see your problem because you work with a single borrower. In my case, I work with a broker who has a dozen loans available every week.
- Dmitriy Fomichenko
- (949) 228-9393
