Vetting a Hard Money Lender - General Principles
I was looking into Specialty Lending Group, out of Greenbelt, MD. They are a hard money lender, investing in projects in Washington DC. Jeff Levin is the principal.
I was thinking of investing with them, as they solicit capital from back-end investors or whatever one calls such people. 8-10% annually. They have certain standards they report, and they offer some testimonials. Jeff is also well-regarded on LinkedIn it seems. However, since a person such as myself wouldn't get getting a first position lien on a particular property, one is trusting the company is going to remain solvent and pay its debts.
I was thinking of investing with them, as they solicit capital from back-end investors or whatever one calls such people. 8-10% annually. They have certain standards they report, and they offer some testimonials. Jeff is also well-regarded on LinkedIn it seems. However, since a person such as myself wouldn't get getting a first position lien on a particular property, one is trusting the company is going to remain solvent and pay its debts.
What would you suggest one could do in a case such as this as far as vetting the company? There doesn't appear to be any indication of them on BP, or the BBB. Check Maryland's AG's office, I suppose. Any other thoughts? Would investing in such a manner be something you would consider doing (if you wanted passive investing)?