1. Licensing in NJ:
In New Jersey, if you want to lend money to friends who are real estate investors/flippers, you typically don't need a license. Private individuals can often lend to others without requiring a license. However, there are some nuances and potential exceptions to consider.
2. Private Lending vs. Hard Money Lending:
- Private Lending: This usually involves lending your own money or funds from a private network of individuals to real estate investors. It's often more flexible in terms of rates, terms, and conditions. You set the terms based on mutual agreements.
- Hard Money Lending: Hard money lenders are typically organizations or individuals who lend money specifically for real estate investments. They have defined terms, interest rates, and lending criteria. It's more structured but can be a valuable resource for investors who may not qualify for traditional bank loans. (ie. Lower FICO, no W2 income, etc)
