Verify a private lender?

Private Lending & Conventional Mortgage Advice
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Verify a private lender?

Daniel OrdonezPro Member
San Jose, CA · Member since 2017 · 57 posts · 9 votes
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
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y

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

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  • Ryan SaullePro Member
    Flipper/Rehabber · Rahway, NJ · Member since 2017 · 137 posts · 123 votes
    8y

    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

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

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

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  • James MasottiPro Member
    Rental Property Investor · Washington Township, NJ · Member since 2015 · 1k+ posts · 976 votes
    8y
    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. 

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  • Daniel OrdonezPro Member
    OP
    San Jose, CA · Member since 2017 · 57 posts · 9 votes
    8y
    Where should I look I thought I had someone so I haven’t been looking and I need one this week!
    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    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

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  • Daniel OrdonezPro Member
    OP
    San Jose, CA · Member since 2017 · 57 posts · 9 votes
    8y
    Yeah I don’t want to waste $500
    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

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

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  • Daniel OrdonezPro Member
    OP
    San Jose, CA · Member since 2017 · 57 posts · 9 votes
    8y
    I’ve maxed out my credit cards already so I’m in need of gap funding to be part of the deal
    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    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.

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  • Tendai Soley
    Investor · Stockbridge, GA · Member since 2017 · 9 posts · 0 votes
    8y

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

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y
    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..

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y
    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.. 

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  • Daniel OrdonezPro Member
    OP
    San Jose, CA · Member since 2017 · 57 posts · 9 votes
    8y
    Jay Hinrichs I’m actually doing a deal out of Pennsylvania with a partner so we need to come up with some funds for the bridge
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  • Albert Ng
    Rental Property Investor · San Jose, CA · Member since 2015 · 401 posts · 221 votes
    8y
    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.
    0Reply
  • Brandon Hicks
    Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
    8y
    Did he have pictures of money on his FB page...I love those moronic friend requests 🙄
    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    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..

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    4Reply
  • Andrew Johnson
    Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
    8y
    Daniel Ordonez If it looks too good to be true... If deal terms from a stranger are delusionally good, I wouldn’t bother with verification...
    1Reply
  • Karen MargraveBusiness Member
    Moderator
    Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
    8y

    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. 

    0Reply
  • Jason Allen
    Investor · Sharpsville, PA · Member since 2016 · 45 posts · 22 votes
    8y
    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
    0Reply
  • Jason Allen
    Investor · Sharpsville, PA · Member since 2016 · 45 posts · 22 votes
    8y
    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.
    0Reply
  • Albert Ng
    Rental Property Investor · San Jose, CA · Member since 2015 · 401 posts · 221 votes
    8y
    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.
    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y
    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..

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    0Reply
  • Mike Taddy
    Green Bay (ish), WI · Member since 2017 · 43 posts · 30 votes
    8y
    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

    0Reply
  • Carol C.
    Investor · Nassau County, NY · Member since 2016 · 82 posts · 43 votes
    8y
    @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
    0Reply
  • Daniel OrdonezPro Member
    OP
    San Jose, CA · Member since 2017 · 57 posts · 9 votes
    8y
    Yeah I just don’t want to miss out on any good deals I don’t need much because where I’m investing is in town that aren’t the Bay Area so it’s way more affordable
    0Reply
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