Robert Shemin How to be a Hard Money Lender
Probably the best business in Real Estate Investing is Hard Money Lending. I’ll never forget my first mentor, a multi-millionaire, telling me : “Robert Shemin, all Real Estate Investors start the same way.
They buy little houses, fix them, sell them or rent them.
After 3, 4, 5 years of that, they start wholesaling them
Then they get bigger houses & do bigger rehabs & bigger rentals.
After 4-10 years, they make a lot of money
Then they buy bigger apartment buildings, nicer homes and some commercial property
At this point they’re really starting to make money
we can agree it’s a great business. But you better check with a local attorney to make sure you follow all the legalities
Here The Basic Rules Of Hard Money Lending
Only lend to other investors as a business loan.
Get a great lawyer, title company or escrow company that does loans and understands them.
Make sure that you’re only loaning 50 up to maybe 70% loan to value with all the repairs.
Make sure the person you’re dealing with is a professional with a working system in place and never loan out all the money at once
The 2 biggest mistakes people make in Hard Money Lending are 1) They don’t confirm the value. 2) Miscalculating repairs.
You could have a couple of hundred thousand or millions of dollars lent out that are always working for you. It’s a great business. And just like my mentor said, why wait 20 years to get into it? Why not get into it now? It’s a great business!
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