Has anybody borrowed funds like this?

Question

Dear Investors,

I recently got an offer to borrow money from a hedge fund.

These were the conditions:  I put 5% of the deal amount into an escrow account for 30 days. After the seasoning amount, the company funds the remaining amount including rehab cost and takes 15% of the profit after the property sells.

Has anybody used this type of loans? The person also placed an ad on BP about  this. Is it ok to put ur money upfront?

Please share your experience.

ThanksVish

Patrick L. · Answer

Is this "hedge fund" in Nigeria?

Jay Hinrichs · Answer

there are many companies that do all sorts of scams when it comes to lending money or doing deals  any company asking for more than an appraisal one needs to be wary... they usually make a living on their Due Diligence fee's  its old as the hills this scam

Vish Iyer · Answer

Yes all your points are valid. The email reeks of scam!  His office is in New York and I noticed he had several posts on BP as a private lender; which looked like he knew what he was talking about, when I called him he offered me this money first deal!?!

Thank you!

Jon Holdman · Answer

Simply reading that message tells me its a scam.  Spelling errors, grammar errors, pointing to some "Non_Disclousher" law that lets him reveal borrowers?  Hit the "spam" button on junk like this.

Vish Iyer · Answer

Ok he was here in Biggerpockets and he even placed an ad for private lending. I am a fairly experienced investor so do my due diligence. I am new to BP and wanted to give  benefit of doubt to PRO BP members.

Now I see that his acct is closed...

Scam Alert:

His name is Geoffrey Petit.Here is his email I received. So watch out for this guy....

Vish, Attached are the documents you requested. Because of Non_Disclousher law I can reveal to you who has borrowed money from us. anyway go over the documents and see if its a fit if not maybe you can find someone else that has a similar program. Our minimum deal would be $100,000.00. Read it carefully we give you 100% and you don't have to pay anything back for one year at the end of the one year the 15% will be deducted from your deal. I din't think you will find anyone that can do what we do.Thank YouHaifa Consultant,Inc.

Attached are the documents you requested. Because of Non_Disclousher law I can reveal to you who has borrowed money from us. anyway go over the documents and see if its a fit if not maybe you can find someone else that has a similar program. Our minimum deal would be $100,000.00. Read it carefully we give you 100% and you don't have to pay anything back for one year at the end of the one year the 15% will be deducted from your deal. I din't think you will find anyone that can do what we do.

Thank You

Haifa Consultant,Inc.

Jay Hinrichs · Answer

he spelled don't  as din't  first clue.. my spelling is usually not good but its on purpose.

this is a total scam

Please be aware just because someone is on BP there is no filter or vetting initially of anyone who post here is a PRO  IE paid to be on the member site.. there are warnings from the owners of the site.

Having been in the HML business for 30 plus years and now managing private funds I can tell you what was described is just a way to get your deposit go dark never to be heard from again.

Vish Iyer · Answer

Thank you gentlemen! Looks like no one has used it!

Ned Carey · Answer

I see no rational reason for putting the money up front and "Seasoning it"  When there is no sufficient reason for something like that to me it is a red flag of a scam.

Michael Henry · Answer

Seems fishy... but ask for the escrow agreement up front and before moving forward look it over or have your attorney look it over.

Has anybody borrowed funds like this?

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