How you know if the private money lenders or the hard money lenders are real and how You can be sure .
Been searching for awhile some people when I ask for website they never respond back.
An excellent first question. Any legitimate hard money lender will have a website, and usually a Facebook page; but definitely a website. And they should be registered with their state too. You can check with the Better Business Bureau to see how many complaints have been lodged against them, if they were resolved, how quickly, and their attitude about having to do so. Since private money lenders are not required to be registered, probably don't have a website, and wouldn't be listed with the Better Business Bureau, they are a different story. You could check on Linked In, they might have a Facebook page, or own a business you could check out on certain forums. For the most part, with a private lender, you're checking various areas of their lives to try and ascertain their character, and trustworthiness.
You should also access the public records, online, or in person if online isn't available in the county they live and do business. You're looking to ensure they do not have an unreasonable amount of negative activity therein, like lawsuits and judgements recorded against them. Look up their other recorded documents, do they own real property, how many properties, go look at those properties in person are they dumps, or are they nice? Go look at the properties they fund for others, are they even real REI or is it an unbuildable swamp?
Depending on dollar amounts you're talking about, you could even run a background check or hire a PI to research them.
And networking in person @ local REI groups. Reputable HL/PML will be reputable in a way that you can find out from other people. Then you do the records searches and on the ground research to see if the whole story is consistent.
@keven Griffin , thanks I went through some money lenders and they're fine till I ask for the website they disappeared.
That's why was scary
@Tyler Mullen thanks probably I will slow down and take my time till I find someone I can meet face to face
@Alamen Ems ask the HML if you can get one of their clients, at least, for a reference.
They should have a web presence, and potentially an online application because that's not cheap.
Or ask them if they have any other affiliations with other businesses.
Ask them how long it takes to close a loan. If they say 3 days. Hang up.
Ask them how many loans they're closing monthly, or the dollar amounts? Basically, ask them questions that make them think, and if the answers don't come back the right way, you'll know.
At the end of the day, you should be able to tell who is in this business, and who isn't.
Go Bucks! (Bench Barrett!)
And for the most part, private lenders loan locally, which is good for you. You can meet with them to show them you are savvy enough to be trusted with their money, and you can both get a feel for each other. But remember, their first concern is going to be making sure they can get their money back; which goes to your competency in analyzing a property, being able to do an accurate rehab estimate, knowing and being able to prove the numbers of the deal. Being able to have them comfortable that the deal is good, and you can make it happen, beginning to end.
Go to a local REI group meeting and ask for a referral from someone who has used an HML. You are just outside Columbus so there should be several MeetUp groups in the area.
Thanks so much guys for the help
@David Weeintraub Go Buckeyes
@Alamen Ems had by Bachelor Party in a Luxury Box in the Shoe. Was the Best. Day. Ever! :-) (next to birth of kid...kinda...)