Hard Money Lender Scams
Hi there,
So, I am new to investing. In the past 6 weeks, I've been able to buy property from motivated sellers and sell it for a very large profit. AS a result, I applied for private funding with willie stevens with posh realty investors. I was able to be approved for $100,000 based on an executive summary, my drivers license, and copy of my utility bill. NO bank statements, or proof of my business financials were required. I got approved for 100k and he is offering me 5% interest rate. Pay back within 1 year. The paperwork looks legitimate. ITs 3 pages long that outlines the terms. It is going to cost me $3,900 which is an up-front loan processing fee.
Does this funding seem legitimate? I don't want to be scammed into someone getting me to wire them $3,900 to their bank account. What are other signs for private money scammers?