How To Start A Hard Money Lending Fund From Scratch

[@bridger_pennington]

Who wants to start a hard money lending fund?

[@Thefewfunds]

I do want to start a fund. I have one in mind just novice as all get out

[@Seasee]

Interested, where can we read/see more about it ,before we move on. Kinda know what it entails..

[@KiNG-tx9je]

I'm IN.. I am inheriting some money this year from the looks of it. I'm ready to put it to work. I don't need it all at once anyway. I can lend 500-1milish. About what I'd be comfy with at first. Until I get these laundromat and a few properties of my own

[@THEYOUNGMILLIONAIRES_]

Me

[@shounakchatterjee1823]

BRIDGER PENNINGRON :- Hii Bridger, here i am from India being wanted to start hard money lending

[@manuelmarine]

great insight bro! i will say though, at least in miami, not a single hard money lender will take 2nd position.

[@jeffbechtold9203]

Bridger most hard money real estate loans are in 1st position not a 2nd lien position. 2nd lien position is a bad place to be. Also hard money loans are typically higher leverage loans and take into account the ARV, LTC, and also includes the money to finance in most of the renovation costs. I understand that you are making this very basic and there are many more advantages with hard money loans. It should be noted that the lending side and getting set up to actually lend hard money once you start the fund is a whole other project.

[@certified_boogeyman]

he said first position...

[@ColdCallSteve]

“A whole other project” you mean finding the people to lend to? Ensuring it’s a good deal? Can you elaborate please?

[@stanislavdidenko8436]

I was searching for basics of HML to become a flipper. It was truly great to get an insight from the lander's prospective, only now I have realized the logic behind 80% LTV and 1st right to be paid.

[@KevinSmith-oz5oz]

Should I create an LlC for lending. With that being said, am I paying short term Capital agains on returns. Obviously I’m new to this, and would like to start off the correct way.

[@nathanbangs1012]

Been doing it for 4 years..I love it!

[@21copyCat]

who set up the legals on the deal? do u have someone to recommend?

[@kdmj48]

Where did you go for training?

[@ramehkhazen2223]

@@21copyCatAny real estate attorney can set up template docs for this. Title co records the mortgage/promissory and clears title.

[@wilfredombaba5950]

Am in this business honestly the business is good when you let the few borrowers you have to market you

[@chaoswitch1974]

​@@ramehkhazen2223if the borrowers can't market for you, you're nothing but a DIRT BAG

[@NickRuiz]

So if I raise capital from multiple investors, that exceeds the loan amounts to deploy at the moment, do I use the funds pro rata that I’ve raised so EVERY investor has exposure to EVERY single loan? I hope you understand what I’m asking. Thx

[@BennyTumbletoes]

Love the pod bro

[@DewTime]

That’s a good question. Wish someone answered it

[@dustinmcquate5633]

@@DewTime @nickruiz We pool all of the funds from every investor and then use that pool to fund deals as they come in. Some HML will fund each deal with the specific investors but that's a lot of work and IMO doesnt provide the same level of protection as our method.

[@TheBestOnMarz23]

Bridges is a great educator on how to start real estate funds but as a person that has used hard money in the past on real estate projects and currently have a hard money loan on a project I HATE this skin in the game tactic new hard money lenders are going with. listen I understand Its a protection mechanism for the lender but I love my current lender that gives 100% of 65% of the ARV, they do an appraisal based on the market and lend %65 on that, theres some limitations to the rehab cost but an example is: you have a 40k purchase and 25k rehab budget, and the ARV is 100k the HML will lend the whole project and only take 3 points. Now the interest rate is high af at 12% BUT its 0 down on the loan you just got to pay closing costs. Just my lil diatribe, keep doing ya thing Bridger!

[@Datdudefly]

G, are you still using this lender? Do mind sharing who it is or someone similar that I could use?

[@cwallace06]

I've got the same set-up. Works great.

[@21copyCat]

who set up the legal document on the private lender deal

[@liveandletlive2894]

Wondering the same

[@DewTime]

The lender hires a lawyer

[@rftghyjukiol]

Hello and thank you. I'm thinking about doing my first hard money lend. I do realestate but was never the BANK. What do I need , an attorney , appraiser, and title company? Who outs the actual lein on the property, the title company ? I appreciate your time

[@liveandletlive2894]

Wondering the same. I have clients lined up who want to borrow, but I need this info.

[@jamesdupuis4140]

When do you place a lien on the property? Immediately upon lending or do you wait until if and when the first payment is late?

[@oleopathic]

Right away. Once there is late payment you have option to foreclose on property. Or not -- depending on your game plan and relationship to borrower.

[@Lyfeastrey]

Bridger whistles as he talks.. 😂

[@outcoldmusic1]

Do you have to be licensed to do hard money loans?

[@bridger_pennington]

Depends what you're lending on and in which state but typically you don't need one

[@Bearjew613]

The best advantage isnt the money given to you from your father its the knowledge!!!!!

[@matthewellis3004]

What does the Team of professionals look like necessary to make this happen in CA? And how much(%) is allocated to these pros per deal approx.?

[@bridger_pennington]

You’ll need a team including a fund manager, legal counsel, a loan processor, and an underwriter. Typically, professional fees per deal range from 2-5% of the loan amount, depending on the complexity.

[@Jonathan.Killam]

The real fun is when you realize you can get gap funding to cover the "skin in the game".

[@SoulMonger]

i respect that he made you earn your own shit. could you interview him sometime to discuss his views on that side of parenting?

[@toadfrench7801]

Is there a max interest rate limit a hard lender can charge for an investment property?

[@liveandletlive2894]

No

[@DewTime]

Do usury laws not apply?

[@joe-zp7ge]

im a hard money lender for many years.....rarely will a private lender be in a 2 position....everything looks good on a chalkboard but its not reality

[@DewTime]

What part of this video is not reality? Just wondering as someone trying to get started

[@joe-zp7ge]

what im saying is rarely do hard money lenders take a second position behind instituition loans . ive done it once but the lender ahead of me failed to mention the first was in default and i had to bring the first current. in the end i barely broke even. sometimes being too creative can come back to hurt you. i work the tri-county area of s florida

[@DewTime]

@@joe-zp7ge ah I see. I guess I’ll definitely avoid the second position then

[@gimmeadollar1062]

Who trying to link up and do a joint venture in something productive

[@4b11t9]

Finally, a shadow bank. I been looking for you guys!

[@bridger_pennington]

🚀🙌

[@casualbynature5059]

Great vid Bridger thanks for sharing mate

[@waysofaquarius649]

Have hard money lenders partaken in LBOs?

[@jarelllockhart6710]

Would this technically fall under private credit funds ? Or is all the same just said differently?

[@aniljain-bj9zd]

do we need to get the nmls license

[@misterjones7522]

Check your state, not required for Commercial

[@germanarturo11]

Worked in the past in a business loan company, i would like yo start my own office doing the same now. Do you have a list of lenders? Do you have any service like website or i need to build my own?

[@simonefamily1012]

I have 1.3MM in outstanding private notes. I am interested in starting a fund. What is your advise? If I use use $1MM ti start the fund, what is realistic to raise? What are the fee structures? Is it a waterfall or is it per loan?

[@Datdudefly]

Mikayla, are these notes secured or unsecured?

[@waysofaquarius649]

Can Private lenders partake in LBOs?

[@Datdudefly]

Yes!

[@ellenoir5678]

Bridger my guy MR. White board of truth and justice ⚖️

[@drewangell1457]

How do you know their skin in the game isn't just private money from another lender?

[@liveandletlive2894]

It often is

[@DewTime]

That’s why you check bank records. Any large deposits need to be explained. And always assume they’re lying. So do your down due diligence.

[@Poepad]

Do you have a playlist for hard money lender?

[@makefranks1227]

Could you raise business credit funds and then hard money lend to yourself as an investor?🤔

[@ToleXMusic]

dude I’m not on the level of knowledge you spilled here. However, I have to commend your skill. You are a briiiiiliant presenter

[@bridger_pennington]

🙏🙏

[@Hydrogenagent]

Thanks!!!

[@kadenhart_]

Lending is where its at! Cool to hear this is how you got your start

[@NoNamez-j7l]

Thought process : I looked up how to raise captial cause i need to make money but dont even own a business and want to start one and eneded up here. This is super intresting cause ive been in the real estate/ sales entrepreneurship for a while and ive seen your ads on mt okd device alot ... im checking your yt page and youve been preaching about funds for like 4+ years so in my head it would be strange if a person doesn't DO what they preach ... ok i need to take acrion cause ive watsed so MUCH TIMEE NOT taking acrion

[@justinpdube]

He is describing GAP funding and no bank is going to allow it.

[@liveandletlive2894]

The bank doesn't need to allow it. He bought a 100k property for 100k 80% LTV the gap funding for rehab comes later.

[@nancygonzalez4350]

Can a hard money lender lend money to buy a car and what are the best recommendations for that lender?

[@TheBusinessCreditHub]

Can i start this with $100k

[@michaelvelasco1657]

Yes I started with a $40K loan, made $2000 a month on it. Boom I never looked back.

[@OmarOsman98]

@@michaelvelasco165750% interest?

[@liveandletlive2894]

​@@michaelvelasco1657can I reach out to you with some questions?

[@nyacoustics8373]

the house flipper made out like a king lol

[@chaoswitch1974]

And who lost on this investment? For every winner, there's a loser. Scum.

[@jahbless1]

DONT know where he got 7k from

[@fullmetalfreedom]

Bridger. I like that whiteboard you're using on your desk that you can scroll. Where can I find something like that I would love to use it in my presentations. Can you advise where I can get one?

[@aeiou0123]

Amazon

[@fullmetalfreedom]

@@aeiou0123 I didn't find it

[@fullmetalfreedom]

@@aeiou0123 Not that I can find. Nothing like what he's using

[@roroguapo3]

you said yourself you can’t even get your dad to give you money to invest so why should anyone listen to your advice? show your dad this comment i bet it will make him laugh.

[@someguy559]

With Google around why do I even waste time on such a video!

[@Epluribus9]

Why even comment ? Lol

[@liveandletlive2894]

Huh

[@ipxstore3902]

I have a payday loan business I can pay you 14% per year without you doing anything

[@kavonlowkey7613]

Hi How can I invest money with you i have 10,000 and would love to make 14% with you

[@Datdudefly]

@@kavonlowkey7613 I can get you 10 to 12% on loans secured by real estate, much better than unsecured pay day loans. Let me know if your interested. You’ll be first lien at 60% LTV’s or lower.

[@Epluribus9]

@@Datdudefly Lets talk

[@Thefewfunds]

Literally reading a white paper on the massive amount of white collar crimes that take place just in America. Much larger than petty larceny ( still a lot ). Regardless thank you for this video

[@keo3941]

please stop the shoe, i cant stand it.

[@oshitomaha]

Damn my dad has about 1.3M liquid sitting getting 4.5% and then pay taxes… anyone know what’s required to start lending? Do I need a lawyer?

[@bridger_pennington]

I would advise visiting : fundlaunch.com to get more information.

[@mrhudah]

I liked this Video!!!💪🏾🤎