How Do You Spot Red Flags in Borrower Profiles?

Question

Sometimes it’s credit. Sometimes it’s inconsistency. Other times it’s paperwork.

What’s a red flag that instantly makes you dig deeper?

Erik Estrada · Answer

If they withhold information or give you a bogus lengthy explanation on why they could not make their payments current.

Also if the deal itself just does not make any sense. If they are not able to support the value they are proposing with actual comps, if they are dodging your questions about inconsistencies in their LLC docs, if they are trying to make you cut your commission, for a mistake they made, and if they are blowing up your phone every single minute of the day even though you laid it out flat to them that there is a 48 hr turn around time.

List goes on..

Over time you can naturally sniff the BS and just ignore it all together. Refer them somewhere else.. Sometimes it's not worth losing sleep, time and energy for only a couple of grand..

How Do You Spot Red Flags in Borrower Profiles?

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