Private Investor Question?

[Richard Gaston]

Has anyone ever hear of a business called Phoenix FCE Capital Limited, they are suppose to be a private investor/Angel Investors. I got an email from them saying they can help me with 100% Financing, which sounded good. I was thinking of buying this one lead and figured an approximate 75% ARV on this one house, keeping the other 25% for a profit margin. Basically I tested the waters, they sent me an application via my email, very basic. I filled it out and sent it back asking for $175,000.00, you with me so far? I just got an email back from them saying I was approved for the $175,000.00 plus a 5% interest rate (btw, they said they will charge me 5% at the start, sorry forgot to mention that) which got me in a dather (confuse for some folks who don't understand) Here is my figures, see if I am wrong. $175,000.00 * 5% = $8750.00 which added in my total payout should be $183,750.00 They figured $175,000.00 with a 5% interest rate @$4,775.71 with a total payout of $179,775.71.

I don't mind the discount but there is something wrong here, I gave them my SSN, so if they did a credit check they would've known my FICO Score is 580, they did not ask for any property information, I was figuring an approximate value seeing that I did not get all the numbers in yet, but I figured an approximate value at $220,000.00 for the property with a 65% to a 75% Loan on the ARV which gives me some leeway and I got approved? Granted I have to pay the loan back within a year but I figured that, I asked for a year, figured I can do a fix and flip and sell the property before a year is up. They are even asking for monthly payments??? I could do that but I thought it would be the other way around, actually I figured once the loan got approved I close on the house, they give me an upfront draw to give to the contractor and a draw after each project was done until the job was finished. If the Hard Money Lender didn't do that I was going to do that myself, good way to keep a budget as well as keep the contractor honest, don't get the final payment until the job is done. Now does everyone see why I am confused?

[Dawn Anastasi]

I guess I would be concerned about someone getting your name, address, SSN, and copy of ID. Just giving someone those alone is like giving someone money up front because a scammer can sell that information.