Originally Posted by Maidensong
I'm intrigued by HaveEnough's real estate loans. I assume these are single family homes. I wonder what would be involved in turning duplexes into townhouse type properties so each side could be sold individually...
Are there are laws restricting private lending? It's an interesting idea I'd like more info about for on down the road. Any good websites with info on this?
I lend on SFH, new construction and an occasional duplex, triplex or quad. Largest "complex" was 5 duplexes, although these were "cheap" duplexes in a small town. Total was about 300K. I'll lend for the property and rehab amounts. Rehab funds are escrowed and paid out as work is performed.
There are laws restricting, the largest issue is lending to individuals, there are various consumer protections. So, you must lend to a corporation, LLC, entity if you want to do this a lot. Do your research on it, I believe you are permitted to originate 4 loans a year to individuals, but you have to be careful of rates and usury laws. This can be risky, you have to know what you are looking for in property evaluation.
I had some good mentors, no websites that I used. I did become active in our local Real Estate Investors Association (TREIA) in the Triangle (RTP, Raleigh)