Skip to content
Multi-Family and Apartment Investing

User Stats

145
Posts
42
Votes
Frank Agyeman-Duah
  • Real Estate Agent
  • Dallas, TX
42
Votes |
145
Posts

Is Private Lender Legit?

Frank Agyeman-Duah
  • Real Estate Agent
  • Dallas, TX
Posted Jan 20 2022, 17:14

Has anyone here worked with a private lender in Atlanta, GA called Atlanta Lending LLC? I was referred to by them by a member of a Facebook group. They are offering 3.5% on a 30 year loan for a duplex with 5% down. They have not asked for any upfront payments and have agreed that all funds will be transferred directly to my title company. Is kind of too good to be true for me and I want to make sure they are legit because I have another local private lender offering 5.25% interest with 20% down.

User Stats

39,733
Posts
58,403
Votes
Jay Hinrichs#1 All Forums Contributor
  • Real Estate Broker
  • Lake Oswego OR Summerlin, NV
58,403
Votes |
39,733
Posts
Jay Hinrichs#1 All Forums Contributor
  • Real Estate Broker
  • Lake Oswego OR Summerlin, NV
Replied Jan 20 2022, 17:46
well what is your gut telling you ????   when no one else is close to those terms why do you think this company is

I guess you could play along and see if they actually fund..  However generally speaking down payment that is 75% lower than market and rate 30% lower than current market you have to ask yourself why would they do that. ?

and what hedge fund or private investor is willing to take a 3.5% return ???  in todays market

User Stats

145
Posts
42
Votes
Frank Agyeman-Duah
  • Real Estate Agent
  • Dallas, TX
42
Votes |
145
Posts
Frank Agyeman-Duah
  • Real Estate Agent
  • Dallas, TX
Replied Jan 20 2022, 17:48

@Jay Hinrichs Thanks for your input.

BiggerPockets logo
Find, Vet and Invest in Syndications
|
BiggerPockets
PassivePockets will help you find sponsors, evaluate deals, and learn how to invest with confidence.

User Stats

2,175
Posts
1,615
Votes
Lien Vuong
  • Real Estate Agent
  • Boston, MA
1,615
Votes |
2,175
Posts
Lien Vuong
  • Real Estate Agent
  • Boston, MA
Replied Jan 20 2022, 18:29

If its too good to be true ... 

The Elle Group Logo

User Stats

1,344
Posts
871
Votes
Brenden Mitchum
  • Rental Property Investor
  • Atlanta, GA
871
Votes |
1,344
Posts
Brenden Mitchum
  • Rental Property Investor
  • Atlanta, GA
Replied Jan 21 2022, 04:48

Hey @Frank Agyeman-Duah

Are you sure they're a private, non-institutional lender? Sounds close enough to institutional debt that they could just be giving you an FHA loan.. Will you be living in the property? If not, then it isn't institutional and definitely sounds too good to be true. Unfortunately, "a member of a Facebook group" is not a legitimate referral source either. Hopefully someone on here has worked with them but you might want to pass on this one if you can't get any further evidence for their legitimacy..

Keep digging and let us know what you come up with!

Feel free to reach out anytime if you have other questions or just want to chat.

Mitchum Real Estate by eXp Realty Logo

User Stats

145
Posts
42
Votes
Frank Agyeman-Duah
  • Real Estate Agent
  • Dallas, TX
42
Votes |
145
Posts
Frank Agyeman-Duah
  • Real Estate Agent
  • Dallas, TX
Replied Jan 21 2022, 05:06

@Brenden Mitchum Thanks a lot.

User Stats

92
Posts
53
Votes
Penny Brown
  • Realtor
  • Atlanta, GA
53
Votes |
92
Posts
Penny Brown
  • Realtor
  • Atlanta, GA
Replied Jan 27 2022, 21:04

If the company is Atlanta Private Lending LLC, James Melton...it's legit. I have seen his work over the years and its the real deal. I would recommend that you get pre-approved and ask for a TERM SHEET that specifies all of the financial estimates. I'll review it with you if you like and answer any questions...hope this helps!

User Stats

3
Posts
0
Votes
Replied Jan 28 2022, 13:50

Have any of you worked with David Putt?  A private money lender from California?

User Stats

145
Posts
42
Votes
Frank Agyeman-Duah
  • Real Estate Agent
  • Dallas, TX
42
Votes |
145
Posts
Frank Agyeman-Duah
  • Real Estate Agent
  • Dallas, TX
Replied Jan 28 2022, 14:06

@Penny Brown

Thanks for your input Penny. This guy is called Dwight Smith and his company’s name is Atlanta Home Lending. Please inbox me if you have any hard money lender recommendations. Thanks