In order to become a hard money lender (or private money as it is sometimes called) you should first examine hardmoney lending as party of your overall financial strategy. In order to be a hard money lender, you should firts get comfortable with the investment, the players, and the borrowers. Here are some tips for getting started.
Browse the Private Money Lending Guide Site
We created this site because information about how to be a hard money lender is difficult to come by. Before you contact any of the professionals in the directory, or look at loan investment opportunities, browse through the various sections on this site. Be sure to look at the related articles section within each article which will guide you to additional information on a topic that may be of interest to you.
Use the Hard Money Lenders Directories
After you’ve browsed the site to get a general idea of the information available, use the hardmoney lenders investment opportunity directory service to find one or more private money lenders to discuss various investment opportunies. You can search for a lender by loan type, location, or by a keyword (e.g. construction, bridge loan, or rehab loan). Most loan providers will have a few loans they are in the process of funding and will be able to give you details about particular loans that may meet your criteria as a private investor.
Develop a Rapport with a Private Lender
Most loan professionals in the hard money | private money business are looking for long term relationships. Many investors choose a lender with whom they have developed a rapport and who also pass the various due diligence requests put to them about various loans under consideration. Avoid the private money lenders who are pushing too hard, or trying to sell you on something with which you are not comfortable.
Read Articles about investing in Detail
Go back through the Private Money Lending Guide site as you consider your options as a private investor and learn more about the real estate loan investment opportunities. Articles and tips that may not have seemed relevant to you when you were first browsing the site will contain important information which may benefit you in negotiating the best terms and selecting the best loan provider to assist you with your investment.