In order to become a hard money lender (aka “private money”) you should first examine hard money lending as part of your overall financial and investment strategy. In order to be a hard money lender, you should first become comfortable with the asset class, investment, and all parties involved.
Here are a few tips for getting started:
Browse the Private Money Lending Guide Site
This is a big one! We created this site because information about how to be a hard money lender can be difficult to come by. Our goal is to become your primary resource for all things related to hard money lending.
Also, before you contact the industry professionals listed in the directory, or look at investment opportunities, make sure to browse through the various sections offered throughout our site. Be sure to check out the related articles section, which will guide you to additional information on certain topics as well!
Use the Hard Money Lenders Directory
After you’ve browsed the site to get a general idea of the information available, use the loan advisors directory, on the investment side, to connect with one or more private money lenders and discuss their various investment opportunities available.
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 Rapport with a Private Lender
Most loan professionals in the hard/private money business are very interested in long term relationships. Many investors choose a lender whom they have developed a rapport with and who pass the various due diligence tests for loans currently under consideration. Remember, it’s okay to ask questions and really get to know the person or company you intend to invest your capital with. In fact, it’s crucial you ask the tough questions as well.
Absolutely avoid the private money lenders who are pushing too hard, or trying to sell you on something with which you are not comfortable. There’s no better indicator of whether or not you should work with someone than how you feel. Listen to your gut and act accordingly.
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.