📱 Best Platforms
Connected Investors, BiggerPockets
📖 The Hustle
Local real estate investors need fast cash to fund fix-and-flip deals and banks are too slow. As a private hard money lender, you provide short-term loans at 10-15% interest secured by the property. Find flippers on BiggerPockets or at local REIA meetups. Draft a promissory note, record a mortgage lien, and collect monthly interest-only payments until the flip sells. A $20,000 loan at 12% earns you $200 per month until the project completes in 4-8 months.
🚀 First Step
Join BiggerPockets, post in the local forum that you are looking to fund fix-and-flip deals, and attend one REIA meetup this month.
🔑 Keys to Success
- Always get a first-position mortgage lien on the property, recorded with the county, to protect your principal
- Lend no more than 70% of the after-repair value so there is a 30% equity cushion protecting your money
- Vet the flipper's track record — ask for proof of at least 3 completed flips with profit margins shown
🛠 Tools & Resources: BiggerPockets, Connected Investors, Nolo promissory notes, local REIA, county recorder offices