Verify a private lender?

49 Replies

Hey so I’m in need of advise since I’m new to investing. I possibly have a couple deals I’m partnering with ppl. I found someone who is potentially going to fund my deal for 3% interest and $500 up front cost to loan 25k. Does it seem legit? Looked for him on Facebook and looked for the business website but couldn’t find anything. Help and advise would be appreciated

Seems like they're asking for a very low % on their money for a complete stranger. I'd be cautious, maybe try and get some face time with the person to put a face to the name.

Ryan

Absolute scam  no one does this except your mom or dad.... facebook is a joke in my mind for finding lenders

Originally posted by @Jay Hinrichs :

Absolute scam  no one does this except your mom or dad.... facebook is a joke in my mind for finding lenders

@Daniel Ordonez - Jay pretty much summed it up. Plan to pay 10%+ for private money, otherwise it's too good to be true...especially if they want any sort of fees up front. 

all these guys do is suck 500.00 out of you and you never hear from them again.. its the nigerian prince scam just in the real estate space

this is a situation were a credit card advance may be appropriate its small dollars.

well then what about proper or one of those sites.. there is NO private lender that is going to loan you unsecured money for a real estate deal .. unless its your warm market someone you know and that loves you.. thats kind of the reality of that.

Originally posted by @Tendai Soley :

You may have to search for "Hard Money Lenders" in your area. 

he is in San Jose he is looking to participate in a gap funding deal which is usually second position.. to do that you need cash you don't borrow money to do it. in San jose average price for a home is pert near 1 million .. so you know 25k is not much money to play in that sand box and defiantly not anything a HML would even remotely look at.

it is amazing how prices around the country vary though.. In some markets that buys you an entire house..

Originally posted by @Tendai Soley :

You may have to search for "Hard Money Lenders" in your area. 

 ps i did a lot of business in stockbridge in the day i like that part of ATL.. very nice.. 

If he wants $500 fee, tell him to take it out of the 25K and send you $24,500 instead :-D . If he refuse, he’s scamming you.

Just a thought here.. but if your credit cards are maxed and you have to borrow money for equity in a deal I submit that your really being quite risky.. what happens if the deal does not go well.

I think your under capitalized at the moment.. when you go in as equity it should be with ready cash..

Just sayin..

If you get enough people to pay you $500 you've got a nice little business venture going. Don't do it. If it sounds too good to be true, it is. 

3% interest rate is unheard of I am paying my own father 6%. If you have maxed out your credit card you may try a personal loan if you have good credit especially if you use it to pay off your credit cards and get the money you need. I have personally bought 2 houses by getting a personal loan for the entire amount and then re-financing. The only lender I found that will give me a large amount for a personal loan however is SoFi who lives up to $100,000 on a personal loan.

I recommend SoFi to get low rate personal loans. Use my link to grab an extra $100 bonus after your loan funds: https://www.sofi.com/share/210376

What area of Pennsylvania are you currently investing in? Perhaps you could look for more local advice for money sometimes it is easier if people can see the deal and or close to it.

I hope you didn’t find your partners on Facebook ... too. Be careful & double check! Maybe you will thanks the $500 scammer for saving you from the 25K scammer.

Originally posted by @Jason Allen :

3% interest rate is unheard of I am paying my own father 6%. If you have maxed out your credit card you may try a personal loan if you have good credit especially if you use it to pay off your credit cards and get the money you need. I have personally bought 2 houses by getting a personal loan for the entire amount and then re-financing. The only lender I found that will give me a large amount for a personal loan however is SoFi who lives up to $100,000 on a personal loan.

I recommend SoFi to get low rate personal loans. Use my link to grab an extra $100 bonus after your loan funds: https://www.sofi.com/share/210376

 this is about the 10th time I have heard of sofi and 100k unsecured loans based on fico.. I predict they will be out of business in a few years.. that is highly risky lending to do no asset based and simply on fico.. fico has no money ..

Not saying this is you.. but I can see all sorts of fraudster entering this space.. I don't want to elaborate to give any of them ideas..

Originally posted by @Jay Hinrichs :

Just a thought here.. but if your credit cards are maxed and you have to borrow money for equity in a deal I submit that your really being quite risky.. what happens if the deal does not go well.

I think your under capitalized at the moment.. when you go in as equity it should be with ready cash..

Just sayin..

Reading through this thread, when I got to the credit card comment, this would be my concern as well.   Lack of other pertinent information also lends itself that the OP could use some assessment on the deal and themselves.  If $500 towards a deal is a "carrot" for consideration, other vital issues/barriers exist to funding a good deal. 

Hopefully, I'm wrong and the OP can provide clarification, where BP can help steer him to a beneficial long-term solution.

Best regards.

Mike

@Daniel Ordonez - back to your question on how to find lenders. BP has a page for them. Also cix.com (connected investor exchange) You enter the broadstrokes of your deal in and interested investors reach out to you. Good luck. Carol