Becoming a private money lender vetting borrower

Buying & Selling Real Estate
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Becoming a private money lender vetting borrower

Wendy Busa
Madison, WI · Member since 2021 · 75 posts · 19 votes

I am a new investor that is a member of the local REIA. One of the investors is looking to find a hard money lender. I am interested in becoming a hard money lender but I do know the best way to vet the borrower. What are the best sites to use to do a background check and a credit check?

Also, any other insight to this topic would be greatly appreciated.

Thank you,

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  • Wendy Busa
    OP
    Madison, WI · Member since 2021 · 75 posts · 19 votes
    4y

    Correction, not a hard money lender, but a private money lender.

    0Reply
  • Bhekizwe M.
    Bulawayo, Zimbabwe · Member since 2015 · 1k+ posts · 253 votes
    4y

    Hi @Wendy Busa.I'm a newbie yet to do my first deal

    just sharing some thoughts from research as i would like to borrow in the future

    Private Money Lender mostly desire safety and security.I''m sure attractive interest rates too are sought. Viability and feasibility of the deal too, must be scrunitized to ensure safety.Background and credit checks are part of the homework

    Check the after repair value, repair bill, purchase price to see that there is enough to get your money back with interest as agreed

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    4y

    use the same service's that do this for tenants..  ..  

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    0Reply
  • Wendy Busa
    OP
    Madison, WI · Member since 2021 · 75 posts · 19 votes
    4y

    Thank you, but I am new to investing, do you use apartments.com or do you have a preferred service?

    0Reply
  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    4y

    @Wendy Busa

    TransUnion SmartMove is probably the most popular one, and it's what I use. Go to mysmartmove.com. Good luck!

    0Reply
  • Percy N.
    Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 904 votes
    4y

    @Wendy Busa perhaps the most important data point would be to see what experience this person has and what their reputation has been in the REIA.

    Then of-course verify with the traditional data sources and do the deal where you are comfortable and can legally step in if the deal went south.

    0Reply
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