What are the requirements for hard money lender?

[Dave Lin]

Sorry it might be a stupid question but can an individual be a hard money lender and if so what are the general requirements? And what are ways to protect oneself? And in case of default can the hard money lender actually be benefited?

[Bruce Lynn]

You want to check with the hard money lender for their requirements.  Each is different.

I can send you a list of some if you want.

Normally they want you to have some real skin in the game...10-15-20-25%.

They are going to take some up front processing fees from you....$1000-$2000-$5000.

Deal has to make sense....They probably want to see your contract, your comps, your rehab, your project timeline.   Typically they're experts, so you want real solid numbers...or they will flush you out if they think your numbers are off.

What are you protecting yourself from?  Typically they are non-recourse loans.

If you default potentially they could benefit....but that is not their goal I would think.  They're not rehabbers, they're lenders....they don't want to get dirty.   As with most lenders, they do NOT want the house back.