Private Money Lenders Legitimacy
I am currently looking at a price of real estate and weighing my options on acquisition before approaching the seller and seeing if a deal can be reached.
Property Details:
Asking price- 2,000,000
51 doors, 86% current occupancy
24,500$ monthly gross
~11000$ current owner stated operating costs monthly
Current owner purchased the property in 2021 for 450,000$
For the first year I would self manage, live on property.
As far as lending, I've considered approaching an owner finance deal with the owner at full purchase price, but I have also looked at a private lender option for full financing at lower than asking price.
My real question is, when looking at the private lenders, and validating their legitimacy, a few require 0 down, at 5-7%, with a 2000$ loan origination fee. Is there a way to validate the company so that I'm not just handing 2k to a company that's going to deny every loan that crosses their table for an easy 2k. Are there recommendations from BP for private money Lenders to use?