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Hard Money Loans
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addy Employees
How does the investment work? How do multiple share classes work in Hard Money Loans?
Investors will have ownership of different class shares that are linked to the specific property held for collateral.
You are buying a share in a company that lends out money. That share class is directly tied to an individual loan. When you invest, you are investing to a share class for a specific loan to a specific individual person(s). The loan is given to someone and secured by their property. The loan will be registered by the company against the title. If the loan goes bad, the company will force the sale of their house so both the company and whichever bank provided the mortgage on the house are repaid. The corporation you are buying the shares in and who issued the loan is responsible for managing the collections and default of the borrower process