Author Topic: Hard Money Loans  (Read 1669 times)

KingCoin

  • Pencil Stache
  • ****
  • Posts: 783
  • Location: Manhattan
  • Achieved FI @ 30
Hard Money Loans
« on: April 22, 2014, 06:01:20 PM »
Anyone have any good resources on the subject?

Specifically, as a lender, how do I discern the appropriate rate for a loan given factors like LTV, loan notional, project type, maturity, etc.

Where can I find boilerplate legal docs for this kind of loan? Is it necessary to hire a lawyer to review said docs or can one "go it alone"?

Does anyone have experience issuing hard money loans? How did you get up to speed? Where did you find borrowers? What loan types are most appropriate for "beginner lenders"?

Thanks for the advice.

Poorman

  • Bristles
  • ***
  • Posts: 260
  • Age: 41
  • Location: Orange County, CA
Re: Hard Money Loans
« Reply #1 on: April 24, 2014, 11:27:06 AM »
Bruce Norris is one of the top hard money lenders in SoCal.  This site lists the terms that he offers based on purpose, term, LTV, etc.

http://www.thenorrisgroup.com/hard_money_loans/

I attend real estate investment clubs fairly often and small hard money lenders attend as many meetings as possible to network with rehabbers/flippers and offer their services.  A lot of these lenders started as rehabbers themselves and built up enough capital to start lending, therefore they know how to underwrite a deal and whether it makes sense.  Although I don't think that's a prerequisite, you might want to bring in a partner that has extensive experience rehabbing to help with underwriting.

There are a lot of clubs in my area and I've found Meetup.com to be a good resource for getting plugged in to the various clubs.

KingCoin

  • Pencil Stache
  • ****
  • Posts: 783
  • Location: Manhattan
  • Achieved FI @ 30
Re: Hard Money Loans
« Reply #2 on: April 24, 2014, 05:47:43 PM »