Becoming A Private Mortgage Lender


HI everybody, I’m looking to become a private mortgage lender in California. My question is what do I have to do in order to loan out my private lenders' funds to borrowers. Do I need to get a mortgage broker’s license or can I just hire a broker and use his license? Do I need to get a securities and exchange license if so how do I go by getting one? Or should I just lend out the money, close with my closing company and not worry about it? Thanks, Mike


If you are lending your own money, you do not need a license. However, if you are arranging deals for others, you do need a real estate broker license for the operation.

I am a licensed Calif. DRE broker and would be glad to discuss the requirements of such an operation with you in detail. Private money lending brokerage is very interesting but can get pretty involved and I have had hands-on experience in this field. It all depends on how involved you would like to be and what your goals are.

It is also important to know the origin of your interest in this type of business. As you probably know, there are many private lending operations in California. Some thrive, and some go out of business. It all depends on how right things are handled. Anyway, I will glad to hear from you to share futher details.

Answered about 9 years ago
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