How To Screen Lender❓

[Adam Blachnio]

Hi. If I look to get a loan from private lender how can I screen him to check if he is doing it legally❓

And how to secure myself against loosing any upfront fees if this become a scam❓ By putting it on escrow❓

Any advise😎✔️❓

[Mindy Jensen]

@Adam Blachnio, if he's charging you upfront fees, he's a scam. Almost 100% of the time. There is no loan insurance, and any other fee except maybe the appraisal will be wrapped into the loan or paid at closing.

A couple other things to keep an eye out for. Bank loans are around 4.5-5% interest. No hard money lender is going to lend anywhere near these rates.

If the lender says they can do anything from $10,000 to $10 million, they're a scam. The same company who is making $10 million loans is not lending out $10,000.