hard money loans

From: BOB FORD <BOB_FORD@compuserve.com>
Subject: hard money loans
Date: Thu, 07 May 1998 14:48:53 -0400

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>Date: Tue, 5 May 1998 13:27:23 -0700 (PDT)
>From: Sandi Rollins <srollins@econ.Berkeley.EDU>
>Subject: Setting an interest rate for a private loan =

> =

>My mom has a question:
 =

>She and my step-dad make "hard money" loans as a way to
>supplement their retirement income.  Recently, a lawyer told them
>that the written agreement they had with one of their
>less-than-stable borrowers was illegal, since the agreed-upon
>interest rate of 18% (for a private, unsecured personal note)
>was usurious.
 =

>However, he did NOT tell them what was considered a fair
>and legal amount.
> =

>Any ideas where to find out?  This is in California.
> =

>Thanks in advance,
> =

>Sandi

SANDI               =


(THE USUAL WARNING)
I  am not an attorney and the following is not legal advice. It is just m=
y
opinion.  It
is based on my experience in California.  The laws of other states may be=

different.  =


Your mom and dad should consult an attorney AS SOON AS POSSIBLE.  The
last thing you want to happen is for your mom to explain to a judge that
she made
a hard money loan at usurious rates.  That would make you one of the judg=
es
least
favorite people.

If you are not paid on the loans, you may have a big problem collecting o=
n
them
because you can not take the debtor to court.  Just hope everyone pays wh=
at
they
owe.   =


Hard money loans in California are subject to several laws and regulation=
s.
 Get
advice from your attorney on what can and can not be done.  Making hard
money
loans is a business.  If you are in that business, you should protect you=
r
personal
assets by having your corporation make the loans.

GOOD LUCK
BOB FORD
BOB_FORD@COMPUSERVE.COM       =

 =

 =



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