The regulation of private money lenders, also known as “hard money lenders,” can vary depending on the country or state in which they operate. In some jurisdictions, private money lenders may be subject to government regulations, such as licensing requirements, consumer protection laws, and usury laws that limit the interest rates they can charge.
In the United States, private money lenders are typically regulated at the state level, and each state may have different regulations and licensing requirements for private money lenders. For example, in California, private money lenders are regulated by the Department of Real Estate, while in New York, they are regulated by the Department of Financial Services.
It is important to research the laws and regulations in your specific location to determine the extent to which private money lenders are regulated. Additionally, it is always advisable to carefully review the terms and conditions of any loan agreement and seek the advice of a qualified attorney before entering into a loan agreement with a private money lender.