Private investor- Is this a scam?

[Kyle Robbins]

I could use some advice on this topic.

I have a reputable Hard lender set up and ready for a flip, but have recently been emailing me back and forth with a person that claims to be a private investor who has offered a really attractive loan.

 My problem is I am struggling to find any information on the person.  I replied to a facebook ad thru a group, and all I have is the contact persons facebook page. Up to this point they have been unwilling to provide more than conversation thru email "until we get farther into the process".  The investor claim it is private family money that they lend out to investors.

I don't want to get scammed and have stopped the process, as I don't want to give any of my info without verifying it's legit.

Has anyone else worked with an ivestor like this? 

it sure feels like a scam.. Even more so now that ive typed it all out.

Thanks

[Frank Greg]

Quote from @Kyle Robbins:

I could use some advice on this topic.

I have a reputable Hard lender set up and ready for a flip, but have recently been emailing me back and forth with a person that claims to be a private investor who has offered a really attractive loan.

 My problem is I am struggling to find any information on the person.  I replied to a facebook ad thru a group, and all I have is the contact persons facebook page. Up to this point they have been unwilling to provide more than conversation thru email "until we get farther into the process".  The investor claim it is private family money that they lend out to investors.

I don't want to get scammed and have stopped the process, as I don't want to give any of my info without verifying it's legit.

Has anyone else worked with an ivestor like this? 

it sure feels like a scam.. Even more so now that ive typed it all out.

Thanks

@Kyle Robbins    Not necessarily a scam... there is a general unhealthy habit of labeling what you don't understand as 'probably a scam' -- not always the ways the case however.

Rule of thumb, if any lender sends you any terms, loan agreement or other loan documentation, you simply review it (with your attorney if you have to) and either accept or reject based on what the terms are and if it aligns with what you are trying to do.

The financing of flips is a specialized area that regular banks are not equipped to handle and there are many private and alternative lenders in the space that do not necessarily spend what Wells Fargo does ($600 million+) on advertising.

Any private lender can create its own rules, process or underwriting guidelines for use with it's private funds which may feel odd or strange but it really takes a special kind of genius to get duped by a lender whose role is to lend you money for a project.

What is more probable is that you can be taken advantage of by an unethical lender after the fact through excessive fees that can erode whatever profits was present in the deal but then every material term of the transaction is something you should have had a chance to review before signing.