Posted by Bob on February 14, 2005 at 11:18:58:
I have a question for anyone out there who is or who has done business with a local hard money lender.I'm interested in doing some HM lending, using my own funds. I would be lending locally, mostly to people in our RE club.
My question is, how much paperwork do small-scale lenders require before funding a loan? I know that a mortgage and PN are required as security instruments, but I wonder about things like loan applications, financial statements, rehab estimates, etc. The national lenders like Brookview require them because they never meet the borrower, but in my case it seems like overkill.
I was thinking about a one-page application to keep on file, and then another short form to describe the the property, with the purchase and rehab numbers.
Any input would be greatly appreciated.
Bob