How To Become A Hard Money Lender In AZ?
Hi all,
Hard money lending is something i would like to get into, but cannot find any info anywhere on how to do this, I've searched the net and forums like this, looked for books on amazon, but no luck.
Does anyone know how i should go about becoming a Hard Money Lender?
Thanks in advance.
UK2US-Investor,
Glad to meet you.
Learn to use words like "youse guy's" or "forget about it" people will catch on quickly.
If I were looking for investors to loan money to I would start calling the "I Buy House" investors in the paper or attend a CREI club meeting and tell the investors what you intend on doing, you will have more people wanting your service than you can believe immediately.
Just make sure you understand the laws of your state concerning loaning money and you should do just fine.
Jhn $Cash$ Locke
Thanks for your reply.
Its not finding people to loan the money that is the problem, its about the procedures i should follow to make sure i am protected, and to make sure i am not violating any laws.
What i am looking for is like a step by step guide to how i should be a money lender, the contracts i should use, what to do if the borrower gets into trouble with the payments etc etc.
UK2US-Investor,
You will need to start with the Arizona state statues regarding loaning money, see if you meet the requirements, before you start on your paperwork or want to meet the requirements.
I would call this Phase One, if you get by this phase then depending on what type of loans you want to do will depend on finding the proper paperwork.
For instance if you are loaning on property a Tiltle Company can handle the paperwork for you, they are experts making sure that all parties are covered and they have attorneys to review paperwork if there is a doubt, so I would say they already have what you need.
John $Cash$ Locke[ Edited by JohnLocke on Date 05/18/2004 ]
Thanks for your advice.
I recently helped put an investor together with a 50year old lady that was looking to make some $ in rela estate. SHe was attending the meetings at Superior in SLC and not confident enough to go the distance. She had a HELOC at 3.5% for just over 100K. I hooked her up with some other investors who pay her 1 point and 12% on her money (what I offer my dad
it allows her to make a few hundred a month secured by a first on the properties without the headaches of buy and sell.
Most states have $ amounts that if you loan less than you don't have to comply with a lot of stuff like RESPA or regulation "Z"
I would do what John said for the first deal and spend a couple of hundred on an attorney to draw up the final paperwork and ease your mind....
[addsig]
I bought two books that cover it well. Sorry, no titles for you- they're at home.
I wanted to do the same as you, so what I did was type Owner Financing on Amazon- I got there $7.95 great book.
Then on The Paper Game website I bought one for $29.95 (abouts).
PM and I'll give exact title when I get home.
Good luck!
Alan
Be aware state usery law that do regulate the rate you can charge