As a PML, you should....

[Virginia VanOeveren]

To start as a private money lender, educate yourself on real estate investing and lending practices, define clear loan criteria, and conduct thorough due diligence on borrowers and properties. Draft precise agreements outlining loan terms, manage risk by diversifying investments, and build relationships with real estate professionals. Ensure compliance with local laws, start with smaller loans to gain experience, monitor your investments regularly, and trust your instincts as you navigate this venture.

I myself, as a PML. Giving the best quality of service to people is the top priority!

[Mike Grudzien]

Virginia,
That was a perfect, succinct summary of good PML!
Thanks!
Mike 

[Virginia VanOeveren]

Quote from @Mike Grudzien:

Virginia,
That was a perfect, succinct summary of good PML!
Thanks!
Mike 

We always wanted the same thing: To provide great quality of service to those in need!
Let's be the best we can be in this great craft Mike! :))

[Vlad Levrints]

Quote from @Virginia VanOeveren:

To start as a private money lender, educate yourself on real estate investing and lending practices, define clear loan criteria, and conduct thorough due diligence on borrowers and properties. Draft precise agreements outlining loan terms, manage risk by diversifying investments, and build relationships with real estate professionals. Ensure compliance with local laws, start with smaller loans to gain experience, monitor your investments regularly, and trust your instincts as you navigate this venture.

I myself, as a PML. Giving the best quality of service to people is the top priority!

 Im curious what is the difference between hard money lending and PML 

Don’t mean to sound naive just want to learn a little more about different types of funding 

Thank you in advance

[Chris Seveney]

Quote from @Virginia VanOeveren:

To start as a private money lender, educate yourself on real estate investing and lending practices, define clear loan criteria, and conduct thorough due diligence on borrowers and properties. Draft precise agreements outlining loan terms, manage risk by diversifying investments, and build relationships with real estate professionals. Ensure compliance with local laws, start with smaller loans to gain experience, monitor your investments regularly, and trust your instincts as you navigate this venture.

I myself, as a PML. Giving the best quality of service to people is the top priority!

 Great advice. Also do not take documents off the internet, get an attorney to draft documents for you and also always close with a title company.  Its the "blocking and tackling" and going with the basics that keep you out of 90% of the problems that we see people have.

[Mike Klarman]

Virginia, I would love to hear about a deal or two that you funded.  Be interesting to see the inner workings of the deal and how it was underwritten.

The big question in life, not to be or not to be, not nature vs nurture, no, what is the difference between a HML and a PML?

Answer is, could be nothing and another answer is could be everything.  There's lots of definitions and distinctions between the two that get thrown around.  In the end, it is up to how the investor themselves classify the lender.

HML is thought of being more "institutional money". I know of. very big HML that was funded by a billionaire with just 100 million to start, it was like 15 years ago and they are still around today and doing billions per year in loans. Now, this was all done with someone's private money so is it private money or hard money?

To me, PML is a friend of a friend or an Uncle or a co-worker's father.  There's some connection you have to this person with money who is looking to invest it short term and collect an x% return.  You and this private person you met hammer out the details of the loan at the kitchen table so to speak and you seal it with a handshake and your reputation that this Private Person already respects or whomever introduced has vouched for you.

But if a man opens a lending company tomorrow with 50 Million of his own capital and he checks in on the HML market to see what it bears and he copies his products and UW guidelines and now is he PML or HML? That's why the personal connection with the verbal deal and personal reputation on the line matters for me in classifying as a PML situation.