Updated almost 6 years ago on . Most recent reply
Vetting a Private Money Lender
I am in the process of vetting a private money lender and I want to make sure that it's not a situation that sounds too good to be true. So I need help with the following:
1. Is a down payment typically required?
2. The origination fee, Personal guarantee insurance, Hazard insurance and 5% down payment required prior to loan disbursement?
3. 5% interest rate (annum)
I've read some forums where you don't give any money upfront because of scams so I just want to be sure that this isn't one of them. I'm not familiar with this individual and found him on bigger pockets. I don't want to assume that just because I found this information on bigger pockets makes it legit. Any help would be appreciated.
Most Popular Reply
#5 Wholesaling Contributor
- Real Estate Broker
- Naples, FL
SCAM. No legitimate lender is going to ask for 5% before the loan closes. If there are fees and/or points they should only be paid at closing. If you give the person in your post ANY money the odds are you will never see it back nor will they give you the loan.
BTW---NOBODY lends at 3.5% interest. Not even my rich uncle:)