Private Money Lenders

13 Replies

Hello again BP Professionals. 

thank you once more for the great responses on questions to info-hungry (new word) like me. 

I would like to know how do you verify somebody online that says they can finance your deal.  I got few emails back from the people at Goldmine Private Lenders saying that they are legit. i found out that some jump in and ask for upfront payment right away and i ignore them at once. Then some looks legit, they give some identification, company name and address that seems exist with upfront requirements but no fee. so maybe there are some that actually want to invest but HOW can we do a due diligence on them?

i did see a forum here at BP that GPL is real. i also agree that most try to exploit.

thank you again

I don't think you need to do much due diligence on them. They need to do it on you. You are getting money from them so your risk is low, their risk is high. 

You have already said you won't give them money up front, that would be your biggest concern. As long as any fees they get are on the HUD-1 closing statement they are not getting anything unless they fund your deal.

Keep in mind I wouldn't consider any of these "Private Lenders" These are professional lenders or Hard Money lenders. Aunt Sue doesn't have a "Company", professional lenders do. I consider a "Private Lender' as someone who is a friend, family or associate who loans to you because they know and trust you.

Watch out for Emmason Firm here on BP, he has been messaging me trying to get me to fill out his form before he even identifies himself.  Can't stand that stuff.

thank you Ned. BTW Howd they do the @ (username) thing on the forums?

The offer does look like a Hard Money as it is also a synonym for Private Money (sometimes). He wanted to give me the per deal details as for their due diligence. then 4% interest for 1 year term. is that too good to be true or does it really exist? does 4-6% rally exist on a HML?

i wish i could paste a pdf for all to see so it would serve a sample for some of us. or can I?

John,

i get those too and put them to waste.

maybe we could start to list any companies out there that are doing this and see if anyone deals with them. if they are legit, then someone may have an experience with them, that are not affiliate of course. Would that be legal to do that on this forum?

or maybe Josh can create a Section for that, (just an idea)

The easiest way to get the @ thing to work is type @?  Then a list of names that are in the thread below the post window. Just pick one. Otherwise start typing a name and a list comes up but includes everyone on the site with those letters so it is not as reliable. Some names like J Scott are particularly hard to tag. 

You might be able to post a PDF by clicking the insert image button above the post (Little box with mountains) 

I simply cannot image any knowledgeable lender doing 4-6%. People in the business know they can get more. Only a true private lender who's only other choice of investment is a 3% Bank CD would do that low of a rate. I think you are smart to be suspicious.

Originally posted by @Ned Carey :

Some names like J Scott are particularly hard to tag. 

 It's okay...I have a keyword alert set up...so I still see these...  :-)

@Ned Carey  @J Scott 

(million dollar info even @J Scott worked. check is on the mail - oh, no solicitation   so a million thanks might do)

this is why I reach out to pros. it is kind of suspicious.

the lender is Angeo Private Lending if anybody want to comment about them

https://www.linkedin.com/pub/anbalagan-george/aa/5b4/7a0

I don't think pdf is allowed. it seems uploading but does not show.

Originally posted by @John Horner :

Watch out for Emmason Firm here on BP, he has been messaging me trying to get me to fill out his form before he even identifies himself.  Can't stand that stuff.

 He has contacted me as well, however when I requested the documents he referred to, he never sent them for me and my lawyer to review. 

follow up:

in the end he asked for $ 650 Verification fee.

beware

below is the thread

Hello Mario,

It cant be paid through an escrow, because it will be used in verifying you and all your information's from your loan application forms. Thank you !

ANGEO PRIVATE LENDING
Anbalagan George
904-428-8253
904-562-2867


 To: 'Anbalagan George' <[email protected]>
Sent: Thu, Jan 15, 2015 3:07 pm
Subject: RE: Angeo_Loan_Offer

And that would be paid on an escrow account; correct?

From: Anbalagan George [mailto:[email protected]
 
Subject: Re: Angeo_Loan_Offer

Hello Mario,

Loan verification amount is $650. That's all. Thank you !


ANGEO PRIVATE LENDING
Anbalagan George
904-428-8253
 
 
 
To: 'Anbalagan George' <[email protected]>
Sent: Thu, Jan 15, 2015 07:24 PM
Subject: RE: Angeo_Loan_Offer

I was looking at $ 400K.

From: Anbalagan George [mailto:[email protected]]
Sent: Thursday, January 15, 2015 1:09 PM
 Subject: Re: Angeo_Loan_Offer

Hello Mario,

What is your loan amount and loan duration? I will know with this. Thank you!


ANGEO PRIVATE LENDING
Anbalagan George
904-428-8253


-----Original Message-----
From: Mario Gamilo <[email protected]>
To: 'Anbalagan George' <[email protected]>
Sent: Thu, Jan 15, 2015 06:27 PM
Subject: RE: Angeo_Loan_Offer

And how much would the verification fee be?

From: Anbalagan George [mailto:[email protected]]
Sent: Thursday, January 15, 2015 12:25 PM
To: [email protected]
Subject: Re: Angeo_Loan_Offer

Hello Mario,

Good morning, I might request you to pay for just verification fee. After which, we do our verification process through our attorney between 4-5 days and you will be approved.

You will receive a free gift basket from us at your approval. Then your Loan agreement will be prepared in 24hours, after which you will be funded. Any further questions , please ask?


ANGEO PRIVATE LENDING
Anbalagan George
904-428-8253

Originally posted by @Ned Carey :

I don't think you need to do much due diligence on them. They need to do it on you. You are getting money from them so your risk is low, their risk is high. 

You have already said you won't give them money up front, that would be your biggest concern.

I have to strongly disagree. Even if you don't give them money up front, which you should obviously never do, your risk can be huge. Much more valuable than up-front money, could be your personal information.

To check you out, most lenders will ask for a 1003 Uniform Residential Loan Application or equivalent, with all your bank info, date of birth, SSN, location of bank accounts and the associated account numbers. Here, a disreputable lender can easily steal your identity, possibly your money, or simply sell this information to someone who will.

A website like privatemoneygoldmine, which has been exposed in dozens of threads on this board, might rip you off for a few dollars until you figure it out. This is a shame, and perhaps you'll feel like an idiot, but you'll move on. The real danger is that few of these sites actually vet their advertisers and have no idea who they really are.

In these cases, you have no idea with whom you're dealing or even the country in which they reside. Would you normally provide invasive personal financial information to anyone anonymously on a website, because you paid to be a member?

Up front fees aside, this is a strong reason to find your lenders locally to meet and check them out, well before they investigate you. The smaller and more private the lender, the more true this is (though the recent big box hacks might suggest that it's not just small-fry at risk).

Always ask the lender how they are protecting your personal information. Don't assume they know how to safeguard it or that that's even important to them. This applies to even the most honest, reliable, well-intended lenders.

(Beyond the scope here, but let's not even talk about what happens to your info if even an honest, legitimate, well-regarded lender, sells their notes.)

 Jeff

Jeff S Na 

i agree.

they ask your personal info right after you tell them how much are you looking to borrow. this is when I ask

"is there going to be an upfront fee before we sign the contract". some say no, then I ask again "how about insurance fee, verification fee, or security fee etc.

then they say. there is a $ 500 ...fee.. they never get my info after that. then a conscience or a nasty email is what I get next.

PrivateMoneGoldmine should be liable for this. its like harboring terrorists. same case

Excellent Point @Jeff S 

I have bought memberships at certain sites and contacted and been contacted from their "private lenders". All who responded, but one were scammers. Others didn't even respond to phone or email. The one that wasn't a scammer didn't like my tone at first and that blew it for me there. Not saying that he was legit, but it was strongly worded.

In order to let these scammers know I will not be paying up front for anything unless through my bank or escrow account. Most decline. Of course the easy ones to spot demand moneygram or western union. 

Don't ever fall for these:

ANYTHING from Africa, Western Union/Money Gram, no phone # picture business address or license business names, phony IDs (one is on BP, but he is a TOTAL SCAMMER (aren't you William Frederick Jr), american names but can't speak a lick of english or have heavy accents usually from Asia, tell you no money upfront excpet for certain amount until you pay and then there is more upfront costs they didn't know about, and it goes on and on.

I'd say to protect your personal and private information (like your SSN and bank accounts), the loaner is taking all the risks up front. Especially if there is a required fee. After the loan is done, then yes, the bigger risk taker is the lender. If one truly has no money, I don't see how anyone would lend to that person, even if it had 15 points, 25% rate, 9000 credit score, great pay with nothing down. There are 100% rehab loans out there that you can easily get once you own the house and have enough equity to make this a good deal.

Just beware that you will give a big number of unknown people your information to not even get a loan, legit or not. Work out your situation, requirements and "not going to happen" right up front. Let them know that. Don't budge no matter how many times they call you and criticize you for being a fool for not taking this loan. Believe me, I've heard it all.

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