I was looking for private lending and I got a colleague request from a person named Mourine James.
He is offering me private lending without knowing what I want to do with the money or the property address. But he wants me to wire $800 to his accounts officer before he funds me.
It looks like ‘red flags’ written all over it, but wanted to check if someone has worked with him before and can tell me if he is legit?
@Abhay Sachar you already know it's a scam. Anyone wanting to lend you money shouldn't ask for any money up front. Even if there are broker fees, they are part of closing costs. Always crack references and search online for heir websites and other info before working with any lender or broker.
Common sense should tell you it’s a scam. It certainly has all the signs of a scam. Why would a private lender need you to wire him $800 without knowing any details about the investment?
By the way, a quick Google search shows someone with the same name advertising himself on another website as a lender out of the United Kingdom.
The only lenders I know that will ask for money upfront will be used for appraisal.
Now if it’s a large commercial deal I’ve seen legit hard money lenders require funds upfront so the client won’t shop the deal once they get a term sheet.
But stay away from brokers or lenders who require underwriting fees upfront. Most fees will be paid at closing anyways.
If you have to ask it’s a scam. This is a scam.
Thanks for validating folks! I knew this had scam written all over it
@Abhay Sachar when you dont fill out your profile or post a picture, people will start to think you are a scam also. Fill out your profile. Let people know that you are real.
If you want to find a real lender, become a part of your local Real Estate Investor group or association. You can talk with lenders and people who have used them. It will be based more on your DEAL that you find.
Ha ha Ha! @Rick Pozos - that's hilarious! But thanks for the advice!
I know everyone wants to go online and do everything without personal interaction, but real estate is not one of those things. Like I mentioned, the groups are where you will find some active investors. They will be using hard money pretty regularly. They will know of some lenders that are local. That is the power of networking with others in your field of investing.