So looking for some veteran advice on how to vet a private money lender. This guy posted in our investors group on Facebook that he does private lending. So I figured I'd play along and emailed him. He said he does 100% ltv ( very uncommon) , up 2-20 year term( never heard of that) , 6% , and doesn't take a lien position against the house. I told him the details of the property and at least his math came back correct.
Almost sounds like the Nigerian prince scam to me?
What's the saying if it's too good to be true then it is.
His name on Facebook is alexander taub and says university of oxford under his name.
Maybe a private money borrower veteran could maybe email him and ask the right questions to bet him?
Uses uncommon industry language. Doesn't take a lien position against the house.
Surely you know the answer here.
lol I know. Jut having trouble finding one.
Adam, 100% LTV at 6% and unsecured?!
Those terms don't really add up!
Most private or hard money lenders will go up to is usually 70% - 80%, which depends upon your loan amount and experience as an RE investor.
I really wouldn't pursue this further.
You are not going to find a PRIVATE lender on PUBLIC forums. See the difference in the two words??
Hard money lenders are what you are really looking for. Go to meetups and REIAs. HMLs are going to be everywhere. There is no way to get out of paying 12% and a few points. After you get some deals done, then people will be willing to lend you their personal money. Until then, build the track record. If you can make money paying 12% and a few points, you should be doing great when you can borrow from family and friends at 8% with no points.
That’s a scam. Just ask him how much upfront money he wants.
Yeah sometimes it's just hard to tell. There's no hard money lenders in my immediate area that you can just meet up and talk to. Like i had this guy contact me on LinkedIn
Fortune financials http://www.fundingkey.net/
And it looks legit but I can never tell.
Does sound like a foreign unicorn... Your best bet for private money is to do a couple of traditional deals, put a portfolio together, and then reach out to family. All the while your traditional hard money guy will give you better rates as you prove yourself.
@Adam Wigdorski there’s a few lenders who fund the Buffalo area. It depends on what you wanting to do. If it’s flipping then they may take a look if the loan amount is over $50,000. And $75,000 of buy and hold.
Do you have any of there contact info?
Doesn't take a lien position against the house. - LOL!
I'm actually funding one tomorrow in Buffalo - small world!