Why Choose Hard Money Lending?
Making the decision to become a Hard Money Lender is a good one. Also known as Private Money Lending. Hard Money Lending can be an extremely secure and steady investment. Some of the savviest investors love Hard Money Lending because it provides:
- A Secure Investment
- High Returns
- Passive Income
Let us know if you are looking for help as a Hard Money lender. You use your attorney to prepare your documents. All loans will have clear title and you listed as the mortgage lender. Loan to values and rates will be determined by you. You control the terms we bring you the files.
Hard Money Lenders Make Their Money Work For Them
One of the biggest advantages to Hard Money Lending is that it is passive. That keeps your time free to earn money or enjoy life while you let your investment dollars work hard for you.
Pros And Cons Of Becoming A Hard Money Lender
As great as hard money lending is, there are both Pros and Cons to becoming a hard money lender. Especially if you are doing this on your own. Let’s start by understanding the pros and cons of becoming a Hard Money Lender.
Pros:
Returns are much higher with Hard Money Lending then you will find with most other fixed income investments. There is a always a demand for money in the Real Estate Investing world so real estate investors are willing an able to pay a premium for access to that money.
It is nice knowing that your money is secure while someone else does the work to pay you a high rate of return. With Hard Money Lending, you loan money to a real estate investor that will be renting and holding, flipping, or rehabbing a piece of property and you both receive the benefit.
When you have the documents prepared by your attorney, Hard Money Lenders are secured in the investment with the real estate. In a wors case scenario, you will force the borrower to sell the property to pay back the loan or you will end up with the home. (Again, for more details please discuss with your attorney) Having this security makes this a safer investment then investments with no collateral while keeping the returns high.
If you are not working with a professional to find you deals, please contact to discuss further. You control all aspects of the loan. The terms, the documents, and the servicing of the loan. We bring you the deals.
Cons:
If you decide to become a Hard Money Lender, please remember it is like starting another business and could require your attention at times.
Investing in Hard Money Loans requires a significant amount of capital. You will need to fund the entire loan at the time of closing. This money is sent to your attorney and is released only when both you and your attorney clear the loan for funding.
There are some potential regulations in this type of business, and they change regularly. Please discuss this with your attorney.
Loans Are Secured Against Property
As a Hard Money Lender, you will be secured by one of the best assets in the world, real estate. Real estate is limited and can be sold or can produce income in the way of rent. If you loan against assets, like Investment properties and commercial properties, there will always be a need. Real estate can also be insured and tends to go up in value over time. It is the perfect way to secure an investment.
