@Christopher-White, I just confirmed Episode 60 is the one I was thinking of. I remember that Ryan had a lot of good perspective about acting as a hard money lender, in general, so I'd encourage anyone who's interested to listen to the whole episode, but in particular, I just found the portion I was thinking of starting around the 39 min mark, where Jaren talks about the lack of good funding options for experienced land investors. I didn't re-listen to all of that, now, but I did just dig up the notes that I jotted down about the terms, back when I first listened to that show:
- Each loan secured by a particular property/deal
- Max. 12-month loan term
- If repayment of principal plus interest not made by 12 months (at the latest), contract promissory note concedes that lender may assume the property (essentially deed in lieu / accelerated foreclosure)
- Tiered rate structure
- 25% of proceeds for repayment within 3 months
- 35% of proceeds within 3 to 6 months
- 50% of proceeds for 6 months to note due (12 months)
Now, those are my notes and not Jaren's words verbatim, so I'm not trying to put words into his mouth. In looking over those terms again, I do recognize the issue that @Cory pointed out above, in that the returns are based on a percentage of the earnings from the deal, so the lender buying into the investor's valuation model, and trusting that investor, would be really important.
Then again, if it would help move past the valuation issue at all, on the investor side of things I'd probably be just as happy to have the same or similar structure as above, but with the percentages based on principal borrowed, rather than the profit on the deal.
One other thing I wanted to point out, that I've often thought about, is buying or lending against investors' notes/land contracts, for those doing seller-financing. I think there was a website trying to create a marketplace for that type of thing at one point (tlfolio, I think?), and I tried contacting an investor who posted there a while back, but it just looked to me like the site never caught on for some reason.
Really dreaming here, but I think that something like a Groundfloor for land investing would be awesome - a marketplace for non-accredited investors to do fractional investments on both acquisitions and seller-financed notes. If anyone had the web skills and inclination to pull something like that together, I'd be interested in teaming up. Of course, maybe there's a reason that that other site I mentioned didn't make it.