I'm trying to network with a private lender

[Charles Hill]

Nervous about Private Lenders, how do you know they are legitimate and how do you protect yourself from being scammed ??

[Ryan Hehman]

One common red flag is if a lender requires an upfront fee before accepting an application or offering a term sheet. Legitimate lenders get paid at closing and disclose their fees on the settlement statement. During the process everything should be transparent and you should not have to come out of pocket before the deal closes. If there are any discrepancies, make sure you get clarification before signing. In addition, normal due diligence, plenty of communication, previous reviews, and gut feeling all go a long way towards comfort and success in dealing with a private lender.