I was wondering if anyone could help me with understanding Private Money Lenders

12 Replies

I have had afew emails from people saying they are lenders but the numbers they give out no one answers and they all ask for money up front so if anyone can help me it would be awesome. so do I pay the money they are saying are for fees and all that or should I stay away 

You do not need to pay before a lender talks to you. Ask a local flipper who they use instead.. Or stop in to a local meetup, and ask around. There is LOTS of money out there. Shouldn't be too hard to find..

well I have got their names of PrivateMoneyGoldmine.com and they all say its 

the cost of registration or its for the loan processing fee what should I do I need the money but I'm worried I might get my money took any advise Please

Hey Nathan,

I believe most of those lenders are scam artist. Many of their applications look home made and very unprofessional. I have never paid money upfront to a lender unless I spoke with someone and verified its a legit company.  Like J. Martin advised look for someone local. Good luck.

so stop using that site and just try and find local lenders 

It's not easy finding a money lender at good prices until you get to know them and they get to trust in what you know. Hard money will cost you more but definitely don't pay anything to get it. They will be making more than enough on their money that anyone who says they need money up front is clearly suspect...... Kinda like the crazy spam emails from Africa promising millions for just a small investment :)

so does anyone know if this website is a scam or not privatemoneygoldmine.com 

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I have also delt with them..but did not send any $.... some are legit,,,but some are scams....DO NOT PAY AN UP FRONT FEE....only a 3rd party appraisal! just my advise

Originally posted by @Nathan Martinez :

so does anyone know if this website is a scam or not privatemoneygoldmine.com 


I received solicitations as well.  I call people and/or meet face to face.  As you know this outfit wants $97 up front for a GUARANTEE of funding...but no phone number to call anyone...RED FLAG. Any RE forum, especially a trusted one like BP, will attract scammers like the Boy Scouts attract pedophiles. While a forum may be legit we, as members, protect ourselves and the integrity of the site by self monitoring.

Reading the Terms and Conditions (instead of just checking the box) will show you:

"Neither we nor any third parties provide any warranty or guarantee as to the accuracy, timeliness, performance, completeness or suitability of the information and materials found or offered on this website for any particular purpose."

If they can't be counted on...THEY'RE NO COUNT!

Don't be discouraged and don't give up. There are plenty of legitimate private money lenders available.  Any legitimate lender will be happy to discuss what you plan to do with their money.

Good luck.

First understand, there are a lot of crooks and scammers out there, most are on the internet.

Next, a "PRIVATE LENDER" is someone you know, they are NOT in the business of lending, it might be your doctor, your attorney or grandma. They are known to you from past business or personal relationships. This is out of legal definitions or applications of lending and securities laws.

Anyone (individual) seeking to make loans is a "HARD MONEY LENDER" they are seeking a business relationship. Many call themselves a private lender due to the bad reputation of a hard money lender, but that reputation is changing a bit.

The other reason is  that private lenders are exempt from many lending regulations, they call themselves private lenders to stay under the radar as to compliance, so there are those individual types doing back alley loans as an unregulated lender.

Check with local mortgage brokers, many will have "investors" willing to fund loans, you'll be getting a hard money lender through a registered broker and the chance of being scammed will go down, but not entirely.

Speak to stock brokers, sometimes they may ask a client for idle cash for short terms, they will generally be against the idea so you really need to know your stuff to convince them the money is secured. Might tip them too as they can always dump money in a float account.

Look at the courthouse for deeds of trust filed where the grantee is a private person, they just made a loan, check that secured property and see if a warranty deed was filed, that means they did seller financing if they sold it, skip them. You're looking for cash loans. What you may pick up is a wealthy person, acting as a private lender with someone they know, might be a partner of a builder, whatever. Look them up.

Local REI meetings are a good place to find these unregulated loan sharks, but not saying they may not be fair, if they have the money they may be willing to get involved with you, a bird in hand type thing.

Finance laws are complicated and a hard money lender limits their funding to commercial transactions, most stay away from consumer lending. Be aware that the "Maker" of a loan or note is the borrower, not the lender and if you present deals to others you can fall under legal requirements for soliciting investors or securities. Stay away from advertising for investors to make loans, do so individually, face to face or on the phone. Never solicit loans in writing or promise a certain return, you can promise to pay a rate of interest in the note, but at that point the loan is being made.

Never pay loan fees up front. You will need to pay for a third party appraisal and a credit report upfront with most lenders, but pay other loan or processing fees when the loan is being closed and funded!

Good luck :) 

@Nathan Martinez   If it is too good to be true, then its not true. If they dont agree to meet face to face, then nevermind. if it walks like a duck, quacks like a duck, then it is a duck. careful on who you trust, no matter how desperate things can be. happy investing and good luck.

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