I have been trying to find a legitimate private lender to fund an owner occupied REO. However, for the last 2-3 mos, all I have been experiencing are fraudulent scammers. They are asking for money and fees upfront and providing bogus Proof of Funds letters that anyone can pull of the internet. Even the format of all the loan applications are the same. Does anyone have any suggestions?

@Angela Goode-Taylor   Welcome to BP. You will find most people telling you that "private lenders" are people that you know, etc. However; what you are probably looking for is a loan through a mortgage broker using private individuals investment money rather than an institutional lender correct? 

There's a site that is private party lenders, and if I remember correctly, one of BP members is the one that started it. Here's the link. American Association of Private Party Lenders Youre' right in not wanting to pay upfront fees, etc. 

@Jay Hinrichs   can probably add more to this conversation since he's better versed in lending. Good luck.

You find true private money lenders by talking to everyone you know and everyone you meet about what you do.  Eventually you'll meet people who are 1) interest in what you do, 2) have money, and are 3) willing to invest in you.

But sounds like you're really looking for hard money.  Best way is to attend meetings and meet other investors in your area and get references by word of mouth.

That said, you say OO. That's a MUCH tougher nut to crack. Hard money lenders, and most of the folks on lists like @Karen Margrave  mentions will have no interest in an OO loan.  Owner occupied loans are MUCH more highly regulated than commercial loans.

There is a standard loan application, a 1003.  That's used for almost all loans.  But if the lenders you're touching base with are using that application, they're almost certainly hard money lenders.

@Jon Holdman  is correct, and caught what I didn't, on it being an owner occupied home. Those are much tougher nuts to crack, as there's no exit strategy. What you're basically looking for is a refi correct?  

Thanks @Karen Margrave for even answering my question in the first place. I am looking to do a O/O purchase with a private lender that has an exit strategy attached to it. It would be a lending investment with a layered ROI for the private lender. I will call some of the people I found on the aaplonline list and see what happens.

Thanks again. 

Angela