“I am not a lawyer” Therefore do not accept this as legal advice.
You are correct that most HM loans are considered business loans as opposed to residential loans. Therefore, in most states you would not need a license because only the residential loans are what is regulated by the state.
However, there are a few states that have some restrictions on “commercial” loans, and I believe IL is one of them.
You need to check with the proper State agency to ask.
Do not know about IL, but in my state it is the Dept. of Banking and Finance. that you would need to direct your question…
need advice - hard money lending - Posted by Kevin (IL)
Posted by Kevin (IL) on October 22, 2004 at 12:13:28:
I have been working pre-foreclosures with a group that has great deal of money to invest. As such, I’ve approached them about working as their HML for other investors. I have spoken to a few people about functioning as a HML and they have told me that I do not need to have a license to do this given that the loans are considered business loans and not residential loans. Is this correct or have I been misinformed?
Re: need advice - hard money lending - Posted by James Strange
Posted by James Strange on October 22, 2004 at 17:37:26:
To add what Wes has posted Hard Money Lending often falls into a grey area. As to whetter it is a business loan or residential. Which is why most will rerquire you to sign that no one will live in the house.
Now on to a bigger issue. Your pulling money for an investment. That can be an even bigger problem SEC violations.
My opinion is that it can be a very good business to be in. The product is in high demand and can generate good cash flow. But before you jump in have your ducks looked over by a paid professional.