How To Become A Hard Money Lender



There is money to be made working as a hard money lender or a private lender. A person will loan other money and they will make money if the loan is paid off by or before the maturity date.

They will make money on interests and often make a big return on their investments. When a person is looking for a Fort Worth hard money loan there are some tips to making money as their lender.


To become a hard money lender a person is going to need title insurance. This insurance will protect lenders against fraud or forged documents. If a person has a loss they will need to prove it and the fraud that went into it to see a reimbursement.

Borrower Credit

Hard money lenders will need to look at the credit of the borrower and if they can make the monthly repayments on the loan. They may ask for some form of collateral to secure the loan.

A person will do a credit check on the borrower and look at this and their finances to determine if they can repay the loan.


It is important to have every aspect of the loan documented. This includes all security documents and disclosures. While it will take time to document everything it is well worth the extra safety.

There are also state and other government rules and regulations that need to be followed. If a person does not carefully document everything they may not be able to take their fee. It is important to have documents to back up every step in the lending process.

Other Insurances

The hard lender needs to make sure that the person they are lending money to has fire and other liability insurance. This way if something happens they will get paid for the losses. Some insurance companies specialize in hard lending and can help with this process.


If a person is going to need the money they are lending out before the loan matures this is not the business to get into. While there are people that will pay off the loan early, a lender cannot reply to this.

A person does need to wait for the money and the return. This will take time and they need to be prepared for the wait.

Collateral Value

Collateral can help give the lender security. If for some reason the borrower is not able to pay back the money the collateral will be able to secure the loan. A person will need to have an appraiser look over the collateral and provide value.

This can include a vehicle or other goods. Depreciation also needs to be looked at over the term of the loan.

Cash for Advances

Some borrowers may need additional money to cover things such as property tax or even money to remodel the property. If the lender does not have these extra money things may not work out. They should have plenty of cash to lend without putting themselves in a bad financial situation.

A Fort Worth hard money loan and lending can be a profitable business for those looking to make extra money and invest. Lending has a better return than stocks and a person can make a lot of money by lending other money.

They will need to research how to become a hard money lender and look at the risks. If a person is professional and careful they can make a lot of extra money in this way.

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