how do I know if an offered private loan is legit

Question

ok guys,

I have found the property of my dreams. Ive went threw twice, set up a business plan for the 3 rentals, had a professional heating and plumbing company go threw and give me an estimate. I have everything I need and I want it!!! I went out seeking a hard money loan/ private loan. I recieve many scam emails, that i could pick out instantly as half of them couldnt put a sentence together in english.

one man has contacted me and sounds very upfront, blunt, and legit, but he is from a different state.. he offered me the loan at only5 percent?? I asked for credentials or a website or more information on him, he says hes certified by Georgia gov. And is not a company. He has offered to get the contract written up and signed and money sent out monday so I can seal the deal on the home. I told him I will be opening a seperate account,so I can protect my personal account and he was ok with that. He said he needs some ppersonal information a long with the plan for the money and repayment. For personal info he wants a copy of my drivers license... no soc sec # or anything. But I for some reason dont want to send a copy of my id to someone. Lol I cant do it... how do I find outif its a scam??? I hate to ignore him and end the deal if he is actually legit?? :/ I have told him I will not send out my personal information with out some sort of protection... but I have no idea how this all works or how to go about that!!??? how can I protect myself and find out if he is for real??? Help me out please.

Josiah W. · Answer

I'm confused,  he's suppose to give you a loan with out having evaluated the deal, ran a appraisal or anything???

Danielle Hammond · Answer

loan is for $50,000

Poor credit for hospital bills in collections

more than enough income to cover such a small loan. And loan covers building and repairs.

Danielle Hammond · Answer

he wants me to send him my plan with a copy of my license/identification.. that is my concern.

Devin Scott · Answer

@Danielle Hammond

If he states he is certified by Georgia Gov, maybe you can confirm that from their website or maybe give them a call?

Or maybe ask him for a list of references of other investors he has helped?

Darrell Lee · Answer

What is the sale price?

Downpayment?

Why a hard money lender vs conventional?

Your credit score and income?

Income/expenses of the property?

Maybe you can qualify for a conventional loan? I guess you've already been turned down by them?

I used to own a mortgage company and have originated thousands of loans. But, I'll admit I've been retired for over 15 years and just getting back into the market this year. Without a steady income I cannot get loans though I have mid six figures in the bank so I have to pay cash.

The investor lenders I know need at least a 35% cash down. But their rates are sky high so I'd just rather pay cash.

Danielle Hammond · Answer

@Mindy Jensen... thank you kindly for your advice, I will look into joining!!! :)

Darrell Lee · Answer

Any lender will require your ID and SS#. If you refuse to provide that info, a lender would have to be morons to fund the loan.

You don't provide enough detail on the transaction for me to render help.

Danielle Hammond · Answer

I wonder what "conditions" you are referring to?? Although your reply is slightly negative and rude, I wonder if you meant to word that a different way, or have a little more input as to WHY? you think this... Do you "DOUBT I WILL GET A LOAN?" all together??? maybe I should give up?? Quit looking? Or do you mean you doubt, this specific loan I have posted about will go through? I would love to hear more negativity if you have  more to offer... that's great. :) thanks for the input.

Danielle Hammond · Answer

@darrell lee... what does that mean?? and how does it answer my questions or help... I havent even mentioned my conditions so what are you referring to??????

@nick.. its one guy, did not do a background check.. thats why I am asking for advise.. is that the way I should go?.. I dont kniw how to search him as I only know first and last name.

Mindy, he replied to one of my posts.. I put out in the local newspapers. I will look into going pro

Mindy Jensen · Answer

Where did you find this guy? I say go with your gut. If it smells fishy, it is.

Consider a PRO or Plus membership here on BP. You will have access to the Marketplace, which is the only place you can post deals or financing requests. (PRO members get unlimited access to the Marketplace, Plus members have limited posts.)

While we can't guarantee the deal will be the best for you, we try very hard to eliminate the spammers.

how do I know if an offered private loan is legit

Most Popular Reply