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

[JD Martin]

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

 You've answered your own question. If it feels like a scam it probably is a scam, and even if it's not you should always listen to your instincts and not get involved with anyone that makes you uneasy. 

[Taylor L.]

Sounds like your gut is probably giving you a useful warning.

[Lisa Gunter]

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

 If they're not completely upfront with you and keep dodging your questions, what would you think? Anyone with a good reputation does not behave as such

[Bryan Escudero]

Quote from @Lisa Gunter:

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

 If they're not completely upfront with you and keep dodging your questions, what would you think? Anyone with a good reputation does not behave as such

 I have been recently working with both private lenders and borrowers...the more transparent the process is, the better. You should not have to beg for information from a reputable source. Maybe the lender is great, but your comfort is also important. You level of trust in the partnership should not take priority over a number. There are others who will lend. As others have stated, trust your gut.

[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.

[Rick Pozos]

My question to you @Kyle Robbins is if you have a hard money lender WHY are you looking at someone who you dont know, dont have a recommendation from anyone, dont have a relationship with???

Kind of like you are dating someone you get along great with. Everything is going good. BUT here comes some other little hotty. Do you stay with what you know is good and good to you? Do you go chasing something that MIGHT be better? The grass is not always greener.

Personally, I stay with what has been good to me. So what if they are a point higher. So what if they are a few points higher. You know everyone. You know that you have someone who has helped you in the past. Dont go shopping on the internet or you are going to get catfished. If 2% or even 3% higher interest rate is going to break your deal, DONT DO THE DEAL. It is not that great of a deal to begin with. Stay with what has worked for you in the past. OR get recommendations from friends who have used other lenders.

[Dave Skow]

scam

[Carla Fears]

If it's Access Funding - RUN!!!!!!

[Beth Johnson]

@JD Martin

Private family money won't treat you like that and not even talk with you over the phone. Most truly private lenders are individuals or small entities who base loans on relationship (among other things) so the fact they won't even pick up the phone is a good sign it's a scam.

[Jonathan R McLaughlin]

@Kyle Robbins ask them how to “get further into the process”

guaranteed it will involve you sending money

Don’t :)

[Kyle Robbins]

Thank you everyone for the advice!

After going back and forth with the person, I decided that they could not provide the information I needed to be comfortable with the deal.  Maybe it is legit and I'm just a newbie that doesn't have enough experience. But going with your gut is usually the right call...

I am going with the Lender that I know is legit.

Thanks again!