Hard Money Lender

About 70 investors were recently swindled out of about $6.4 million for construction loans on Malibu, California land that is considered undevelopable.  Additionally, on a similar deal brokered by the same lender, the investors claim they lost about $3.5 million.  The Malibu property foreclosed and is only worth a fraction of its appraised value.

The loss of these investors is an unfortunate example of hard money lending.  This type of loan usually goes to people who cannot qualify for traditional loans and mortgages.  Although typically riskier than mortgages, hard money investors buy fractional interests in the transactions, hoping for sizable returns that are backed by the underlying property value.

For more information on hard money lending, please consult Pit Bull Mortgage School at 858-736-7788.