2nd Lien Loans in California

[Ryan Landis]

Hi,

Big fan of BiggerPockets - not very many posts but active forum reader.

I was hoping some of the seasoned members can help provide some input in starting a Hard Money Loan business solely for 2nd Liens on homes. I know there are a lot of rules and regulations that govern this space, so those that have gone through the process before, do you have any advice or recommendations for how to get this up and running as fast as possible while making sure everything is also crossing the t's and dotting the i's?

For context - my partner and I would like to set up a Lending Business in California so that we can provide loans that are secured against their home.

I understand that we will need to set up a business entity, pay for a lawyer to review the legal documents that we use for our loans, but are we required to be licensed under California Finance Lenders Law?

If we are required to be licensed, do we just need to submit an application for a California Finance Lenders License and obtain a surety bond for $25,000 and have net worth of at least $25,000?

Thanks,

Ryan