Who’s Real In The Hard Money Lending Realm?
As the President and Chief Operating Officer of Investor relations, it is my responsibility to explain and offer up information about hard money lending that will educate or inform our potential investors and keep current investors in the know about what we are doing as a company to help keep their cash investments safe and getting greater returns.
Just today I met with a novice Private Investor that wanted to learn more about private money lending and who we are and what we do as Hard Money Capital Group. His intent was to vet us as a viable brokering solution that could help him find a better return than what he was getting in his current financial instrument which was getting him about .25% APR. This of course was why he wanted to sit down and understand our process and parameters better. It is for every investor to interview and find out if the model that is being offered as a means to increase greater returns on cash on cash investments is viable and real. This takes asking a LOT of questions.
Learning Hard Money Lending
Sometimes they can be answered online via a simple website that can house the generic terms & conditions outlining what a borrower will be working inside when they receive the loan. Other information can be secured through face to face meetings, seminars, or even through Skype. Being a bit old school, I enjoy sitting and explaining face to face. There’s just something that brings a greater comfort when you can look someone in the eye and tell them what it is you do and see that the connections are being made in their mind on how they are about to earn interest income in a safer environment.
The “safer environment” is created through mitigation of risk by reduction of Loan to Value investment for our investors. This is done through negotiation and research onto the borrowers. Of course it’s not as deep as a conventional loan since this is a hard money loan and the loan is more dependent upon the equity. That said, we like to be sure we have some kind of gauge on who we are working with on both sides. The borrower of course has the brunt of the risk because they get paid later in the deal. (When they sell) The Investor needs to know that they are as secure as possible within the parameters of the deal.
Hard Money Lending And Hard Money Servicing Partners
The bottom line is that you need to have confidence in the broker(s) that you work with. If there aren’t clear answers or answers that just doesn’t feel right, then it’s probably not in the risk tolerance realm you are seeking. You need to understand what level of risk you are willing to take. As a private investor if you’re looking to fund the fix & Flippers, you have a greater risk, (truly medium risk most times) and if you are looking to do equity share that makes the risk lesser for you and more for the borrower.
Understanding Hard Money Lending
If you’re looking to fund the rehabber that wants to buy and hold, then you must expect that it is most likely your capital will run the length of time and your interest income will become a bit more normal and continuous. (Checks or wired in payments every month until the Balloon is due) That being said make sure that your broker understands how to get the borrower in line for a conventional loan so that when the time comes they don’t end up in trouble. Chances are you could too.
Take the time to interview and decide when you have enough information if that’s the broker you wish to work with. There are many with a plethora of models to choose from. You kind of become your own investment advisor. After all it is your money.
We have a couple of models that can help increase your income potential and help you earn as much as 10% per year every year! Call us at Hard Money Capital Group at 702-902-3120 or email Michael Kaleikini, President and Chief Operating Officer at Hard Money Capital Group at email@example.com.
Michael H. Kaleikini: President And Chief Operating Officer Of Hard Money Capital Group
Michael H. Kaleikini is the President and Chief Operating Officer of Hard Money Capital Group and has over 15 years experience in originating, processing, underwriting, funding, and servicing hard money and private money loans in all fifty states. No private money or hard money loans are too small or too large. Mr. Kaleikini also runs courses for potential hard money lending investors several times per year and can schedule online hard money lending training webinars. Please do not hesitate to contact Michael H. Kaleikini at 702-902-3120 if you want to become a hard money investor or need a hard money loan.