Is It Ethical For Real Estate Investors To Lend On Mortgages?

Pay The Bird Dog

I don’t know.

At first, many investors might not consider using hard money loans for their own investments. But as time goes on, many investors want to start using hard-money loans so that they can get property. They get rent from the property that has been mentioned - when they are profitable - and this cash could be lent - turning investors into lenders.

I think that it’s possible to acquire homes for below market value when homeowners default because the courts price it for a foreclosure price in some jurisdictions and, as a lender, you have first option to buy - I believe. 

Is it ethical for investors to lend on mortgages?

There is conflict of interest for an investor that wants to acquire property at or below market value when they are lending their money on mortgages which could default -  if the investors are predatory, targeting to make loans that could default.

However, on the other hand, if your clients are the same people it’s good to have multiple solutions available to offer them if you are good hearted. You could help keep defaulted borrowers in their home.

What do you think?

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Birds of a Feather Bring Me Renturly