Investing In Hard Money Loans – Why I STOPPED Lending Hard Money | Real Estate Investing | Hard Money Loan


Investing In Hard Money Loans – Highest Rated?

This video explains the pros and cons of hard money lending. It will talk about how to protect yourself when giving a hard money loan and will explain why Chandler no longer does hard money lending.

Chandler Smith has been investing in real estate for the last 6+ years. In that time he has done half a dozen hard money loans and acquired over 70 doors of buy and hold rental real estate. In this video, Chandler discusses the pros and cons of giving hard money loans. He shares his personal successes and failures with hard money lending. Chandler goes in to detail about how to find a good hard money investment, how to structure the agreement, and everything else you would need to know to protect yourself in a hard money deal. He explains the tax advantages of other investment strategies and shares why he no longer does Hard money deals, even though they can be an exceptional investment. The goal of this video is to help you understand hard money lending, and make an educated decision when deciding if it is a good investment for you.

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  1. Chandler David Smith
    July 30, 2021 at 7:27 am

    Do you think hard money lending is worth it?

  2. The Sicilian Brothers
    July 30, 2021 at 7:27 am

    Great timing to stop lending… with inflation… interest rates…. almost not worth it anymore

  3. Matthew Farr
    July 30, 2021 at 7:27 am

    no one seems to explain, where do you find someone to take on your loan? where did you find that person, is there a website or something to offer your money to someone

  4. Peter Gabriel
    July 30, 2021 at 7:27 am

    Meet Kevin says….. omg …. he never shuts up!

  5. Virol john
    July 30, 2021 at 7:27 am

    Just at the dying point moment when i thought its all over , then i got to know hacker LAVEJAS and gradually my life turn around , by now am living in my own house with happy family LAVEJAM ON TELEGRAM he's a God sent to my entire family

  6. dont trust anyone even ur waifu hehehe
    July 30, 2021 at 7:27 am

    So basically, do this in a state w/ no income tax?

  7. Hustle and Bustle - Financial Freedom Made Simple
    July 30, 2021 at 7:27 am

    You can deff offset the passive income from private money loan vs your rentals depreciation. Passive income can be only offset by passive loss. At least that's what the tax code says
    But yes, it is considered regular income ( passive tho )

  8. Ted Jacobson
    July 30, 2021 at 7:27 am

    Great content and suggestions!

  9. William James Rapp
    July 30, 2021 at 7:27 am

    Sounds good but I do not qualify for ANY kind of loans. Not Even Hard Money Not even a Secured Credit Card. I have a business without being able to conduct any business.

  10. Sarry Ibrahim
    July 30, 2021 at 7:27 am

    Hi Chandler, yes there are a few ways to do lending on a tax favored basis. One of those ways is through the Infinite Banking Concept. Also, if I’m not mistaken, this sounds more like private money lending. Hard money lending is when you use OPM. For example, you borrow from a hedge fund or LOC then loan that out at a higher interest rate.

  11. YSL PLUG
    July 30, 2021 at 7:27 am$joealmigh$joealmigh

  12. Bill Mann
    July 30, 2021 at 7:27 am

    Chandler, excellent presentation. ROTH is where you need to be. Glad to help you with some thoughts if needed.

  13. keys randy
    July 30, 2021 at 7:27 am

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  14. keys randy
    July 30, 2021 at 7:27 am

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    July 30, 2021 at 7:27 am

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  16. Jin Kee
    July 30, 2021 at 7:27 am

    this hard money lending thing is gonna be big towards the end of 2020

  17. paolo ruggieri
    July 30, 2021 at 7:27 am

    1. Use a Roth solo 401k
    2. Offset tax with rental losses through depreciation
    3. You can actually take an Ebitda loan and leverage money if you need it

    Feel free to call me for questions 404-782-1545

  18. patman0250
    July 30, 2021 at 7:27 am

    Basically you backed out of something that could be a wonderful source of income. Because the government is so corrupt and taking basically more than half your earnings. That's bullshit

  19. Clued In
    July 30, 2021 at 7:27 am

    Dude you are totally missing the point, how many hours of time you put into the loan vs. how many hours you put into your rental?

  20. Mindi Bear
    July 30, 2021 at 7:27 am

    To avoid the tax issue he described, run your lending business as an S-Corporation and keep funds and profits in the business. Pay yourself a meager salary and only pay taxes on that.

  21. gammafighter
    July 30, 2021 at 7:27 am

    Best ways to counteract the taxes is to make less money or have more children. Lol, I'm planning on having lots of kids and then retiring on as much "passive" income as possible while still staying within the 10% tax bracket.

  22. jack siscavage
    July 30, 2021 at 7:27 am

    Do people get their legs broken when they can't pay?

  23. Piscatore1
    July 30, 2021 at 7:27 am

    From my experience in the 4 hard money loans I’ve done; First position lean only. loan out quite a bit below the properties current value and expect the borrower to put up the rest. Only work with highly experienced flippers. Always use an experienced attorney to draw up the paperwork. Get a personal guarantee from the borrower. Check that borrowers credit score. Advice from my accountant-sometimes the best deal is the one you walk away from.
    As far as the tax liability, haven’t been able to figure it out yet but the post above regarding using a combination of Self-directed IRA money and other money is very interesting. I plan on running it by my accountant. Keep those tax saving strategies coming!

  24. ThomasG1231
    July 30, 2021 at 7:27 am

    How do you find people who want/need hard money loans?

  25. Justin Freeman
    July 30, 2021 at 7:27 am

    Posting before the video starts. My lender offers to cover up to 10% (half an investment down payment) for good credit clients (me). It would allow me to acquire probably 2x properties in the next year instead of one… Obviously with less cash flow temporarily.

  26. Carolyn Rog3Rogers
    July 30, 2021 at 7:27 am

    ydb 🤣🤣🤣🤣🤣😃

  27. nathan wilkinson
    July 30, 2021 at 7:27 am


    I played it like 15 times lol
    And now I hear every breath you take throughout the video 🤦🏼‍♂️

    Your excitement exceeds you chandler!

  28. G K
    July 30, 2021 at 7:27 am

    I'm not a CPA so I'm not 100% but I would look into setting up an LLC taxed as an S Corp to do the hard money loan. Being an S Corp would allow more writeoffs than just doing it in your name. You may be able to move personal expenses into that which are relevant, like maybe lease your car in the Hard Money Loan LLC to write that off

  29. staykeen
    July 30, 2021 at 7:27 am

    Great content

  30. Andrew Angell
    July 30, 2021 at 7:27 am

    Do your hard money lending from a Roth and it will all be tax-free.

  31. Danny Bautista
    July 30, 2021 at 7:27 am

    Any advice for a 18 trying to get into real estate investing

  32. TheRetirementality
    July 30, 2021 at 7:27 am

    I've thought about this, but then I think of all the friends I've loaned money to that never paid me back. And, I just can't wrap my head around someone else doing the right thing for me to make money.

  33. takamex
    July 30, 2021 at 7:27 am

    You are uploading great content (some of the best) and I got the excel spreadsheet (thank you!). It is very good to analyze deals and doing what-ifs (drop price – increase rent – drop loan interest, etc) to look for that elusive 10% COC.

  34. cali N desi life
    July 30, 2021 at 7:27 am

    Hi sir. I have a question if I buy a duplex for $300k how much do I need to put down and how much is closing cost going to be ?

  35. Emmanuel Rodriguez
    July 30, 2021 at 7:27 am

    Taxes on LLC are lower than personal also if you prepay the taxes through though the year you'll be taxed a lot less than paying them all at once.

  36. Chris Blom
    July 30, 2021 at 7:27 am

    Great video Chandler, thanks for posting. Anyone else catch the Graham Stephan style voice edit.

  37. Adrian Gonzalez
    July 30, 2021 at 7:27 am

    Almost at 10k!

  38. Ray Tongolei
    July 30, 2021 at 7:27 am

    Also Chandler, get contact with Jerry Norton real estate investor, now lives in Arizona. He lends money as his passive income strategy. He also fix n flips luxury homes, new builds and wholesales .

  39. Ray Tongolei
    July 30, 2021 at 7:27 am

    Yes Chandler check with Mark J Kohler, attorney and CPA he lives in Idaho now. He may have some tax strategies to help reduce tax liability for lending money. He has a investor mindset who primarily focuses his practice servicing entrepreneurs and small business owners and real estate investors.

  40. Ryan Richert
    July 30, 2021 at 7:27 am

    Thanks for the great content Chandler! Very informative and look forward to future content of this depth.

  41. Cody Young
    July 30, 2021 at 7:27 am

    I hope this channel blows up. quality content and production. nice work Chandler

  42. Heath Q
    July 30, 2021 at 7:27 am

    Chandler you have a great way to make money with out hard money lending. I think it is wise for you to stay with your proven method of buying and holding rentals With that said, there are ways to hard money lend tax free and you don't need to "tie up" your money as you have said in other posts. You have clearly decided against this since you can make more money else where. But I feel you are a bit jaded because you didn't understand what you where doing and didn't get the correct advice to set it up properly.

  43. The Part-time Landlord
    July 30, 2021 at 7:27 am

    Love the content. Very informative.