New to lending money

[Michael Painter]

Hello everyone. I want to get into the money lending aspect of real estate. I’m looking for someone to show me the ropes. I know that everyone’s time is valuable so I am willing to pay for this service. 

[Jay Hinrichs]

lending private money is very state specific.

Pick your state.. then find a decent RE attorney and have them draft your docs.

its not rocket science.. the docs are the docs so that easy.

here is the basics for PML

its basically collateral based. So U want to the emphasis on the collateral first and foremost.

Also depending on the state you need to look at how the defaults and foreclosures work.. Like for me for instance I would not pick a mortgage Sherrifs sale state  like  NY PA NJ etc etc unless your doing loans that are incredibly low loan to value.

I would want to concentrate on Deed of Trust states with Trustee sales and foreclosure time lines that are measured in months NOT years like the aforementioned.

While credit rating is important  experience is where its at for these types of loans.

So find state that is Trustee sale.

do low loan to value on DECENT properties in GOOD areas not the hood.

and borrower with experience .. would pass on newbies to start.

OH and if your going to do this on a continual basis there are license requirements that you currently dont meet. there are 12 or more states that do require a lenders license or you need a MLO to do your origination paper work for you.  Attorney simply drafts the note and mortgage.