murphy40
3 Answers
Colleen
pythonlover
It seems to me that it all depends on who's money it is. If this is your own private money I don't see any reason why you wouldn't be able to lend it to whomever you chose without a license and as long as you disclose the terms of the loan up-front. If this is investment money that you lend to others, i.e. other people's money, the license requirement would make sense.
| 12 years ago. Rating: 0 | |
doolittle
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Example
I want to raise private money and loan it out through a third party lender such as a Hard Money Lender(HML). This lender would loan it to say a rehabber. My lawyer, the closing agent, would order the money from the private person and funnel it to the HML.
As an example I would agree to pay my private person with the money say 7% and charge the HML 12% and I would get spread of 5% each month + points up front.
I have been told that so long as the money is not used for the rehabbers personal residence it’s considered a Commercial Loan therefore you do not need a license in any state to do this.
To consider this a Commerical Loan the money would be loaned to a company such as a LLC or Corporation
Your thoughts and comments would be most appreciated.