Hard Money Finder
I have three private investors who i approached about being a hard money www.finder.meaning I advertise that I can provide a contact for a hml for a fee? my investor freinds will provide the money lower than everyone elses terms. how I get paid is 1-3percent of the loan www.provided.the person who is loooking for this hm pays me for hooking them up. any ideas how I should start this bussiness; and how should I get paid?
small world... I had a chat this morning about the same thing this AM. I have pointed several people to her to invest w/ her.
She asking if I had my brokers license, I said no, but was in training. I can't pay a referral fee if you're not a broker.
I appologized for not being clear, and said The message to you was supposed to say I have a conputer consulting firm, and I'm sure your need computer work performed.
She chuckled and said she did.
Check why the politics of dancing are in your area, or how big a deal getting a brokers lisense is.
If you have a 4-yr degree in CA it's pretty str8 forward.
Be very careful trying to broker a relationship to a lender.
As noted, you may need to be licensed.
It could be better just to provide referrals and to get referrals back for other transactions.
If you are brokering you can be subject to liability issues if a deal goes bad and you provided the introduction. An introduction will be called advice if the borrower wants to sue later.
So, either jump in and get the right license or stay out and just do a friend a favor with no strings attached.
John
[addsig]
do you need a license for hard money loans referals these are private owners not brokers or anything whats the difference? :-?
Quote:
how I get paid is 1-3percent of the loan www.provided.the person who is loooking for this hm pays me for hooking them up.
So are you saying that your investors told you the borrower has to pay you a referral fee? Seems weird. Also 1-3 points on a loan is high for a referral even on hard money.
To get started, I suggest the following:
Enter into a relationship with existing hard money lenders in your area and work out an agreement with them that is approved by your attorney. You get lets say 20% of the loans/points. This is easy and allows them to take the risk of the deals that go bad.
You can have the hard money lender teach you how he works and you can then do them by your self.
You might have as part of your contract that the hard money lender must provide a monthly report of his loans with your investors.
- Charlie