Private lender fraud

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Private lender fraud

Bessemer, AL · Member since 2014 · 581 posts · 32 votes

What is the easiest way to tell if a private lender is a fraud? I have one private lender who keeps contacting me about offering private loans. He says his name is Bryan Chambers from Chambers Financial located at Rathdrum, ID. He found me. I didn't find him. Has anyone ever heard of a Bryan Chambers from Chambers Financial?

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Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

tony,

NO lender lends in all 50 states period.. not one.. many say they do but most are not licensed in a few states.. google lima one and see what states they are licensed in.

no private lender has licenses in all the states they need them in.. Many do it illegally for sure.

and it does not matter to you as a borrower but anyone who says they lend in all 50 states I know they are full of it.

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Tom S.
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
8y
@Tony Marcelle Any upfront fee before closing is always your #1 reg flag. The fact that he keeps contacting you is also a big one.
- Tom
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Greg Downey
Lender · Springfield, MO · Member since 2015 · 379 posts · 180 votes
8y
@Tony Marcelle, @Tom S. is right on the money. Anyone that is asking for money before closing other than for an appraisal is more than likely a scammer.
I am in the lending space and even get solicited by these guys. I usually ask how they got my contact information and at will usually stop them.
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Tony Marcelle
OP
Bessemer, AL · Member since 2014 · 581 posts · 32 votes
8y
@GregDowney Can private lenders provide copies of closing statements or something to verify they are legit? He hasn't asked for upfront fees yet.
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Chris MasonPro Member
Moderator
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
8y
Originally posted by @Tony Marcelle:

@GregDowney Can private lenders provide copies of closing statements or something to verify they are legit? He hasn't asked for upfront fees yet.
Get his license number and look it up at your state regulatory agency. I am certainly not an expert at Alabama law, but I'm guessing that if he is actively soliciting you (without him being your friend or cousin doing you a favor) then he's supposed to be licensed.
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Andrew SyriosPro Member
Moderator
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
8y
I agree with Tom, any fees before closing is extremely suspicious (other than appraisals or inspections or what not). Also, it's rare to have a private lender beating on your door like that. It sounds more like he's a hard money lender, in which case, they probably have pretty high fees/interest rate.
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Debra A.
Specialist · Austin, TX · Member since 2018 · 111 posts · 28 votes
8y
I don't know Alabama law either but as a licensed professional, if he deals with lending residential mortgages, he has to have some sort of license with the NMLS. Go to the NMLS consumer portal and look his name up and see what you find. If he doesn't have one, it may be because of the size of his business, or the amount of loans he writes per year. Google his business name.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
let me ask a simple question what do you think a lender from the northern pan handle of Idaho is doing in Bessemer ( Birmingham area ) of Alabama ??? seem odd ?
use your common sense here.
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Tony Marcelle
OP
Bessemer, AL · Member since 2014 · 581 posts · 32 votes
8y
@Jay Hinrichs No. He is not here in Alabama. He somehow found me online at another real estate investing network site from what he told me. I Google searched his name and company name but found nothing. I figured right then something was off about him. He said he is one those lenders who lends money nationwide in all states.
@Andrew Syrios @Greg Downey @Tom S. I talked to him again and asked if he charge upfront fees. You all were right. He said he does charge upfront fees, so I told him I will not be doing business with him. He then began to ask why I am no longer interested as if it matters because I told him no. I told him I am not paying upfront fees.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
tony,
NO lender lends in all 50 states period.. not one.. many say they do but most are not licensed in a few states.. google lima one and see what states they are licensed in.
no private lender has licenses in all the states they need them in.. Many do it illegally for sure.
and it does not matter to you as a borrower but anyone who says they lend in all 50 states I know they are full of it.
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Tony Marcelle
OP
Bessemer, AL · Member since 2014 · 581 posts · 32 votes
8y
@Jay Hinrichs Thanks for telling me that because that is exactly what I have been seeing from many other so called private lenders claiming they lend nationwide.
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Kyle J.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
8y
Always be extremely wary of anyone who contacts you first, especially when it's unsolicited.
Like @Chris Mason said, you can check his name/license number here: http://www.nmlsconsumeraccess.org/.
Or maybe check with this BP user to see if he has any further information on doing business with him: https://www.biggerpockets.com/forums/49/topics/314197-has-anybody-worked-with-bigger-pockets-member-bryan-chambers
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Tony Marcelle
OP
Bessemer, AL · Member since 2014 · 581 posts · 32 votes
8y
@Kyle J. I am being as cautious as I can be when it comes to private lenders contacting me first. I had a bad feeling from the start something did not seem right about this guy. I have had many other private lenders contact me prior to him, but I showed not interest in doing business with either of them.
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Jason D.
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
8y
A quick Google search pulls up a nearly blank Facebook page and a LinkedIn profile as the owner of a development company, but very little there as well. Nothing about lending or financing
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Tony Marcelle
OP
Bessemer, AL · Member since 2014 · 581 posts · 32 votes
8y
@Jason D. See what I mean? That is what I got.
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Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
8y
Bryan Chambers will accept your pre-paid Loan Application fee in all 50 states... but you'll never get a loan.
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Tony Marcelle
OP
Bessemer, AL · Member since 2014 · 581 posts · 32 votes
8y
@Tom Gimer That is why Bryan is not getting my money.
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Jason CoryPro Member
Real Estate Broker · Birmingham, AL · Member since 2018 · 264 posts · 381 votes
8y
This guy is all over Facebook trying to scam people. I especially enjoy when they use a gmail address.
If he's done any loans in Jefferson County you'll find a record on the landmark site.
http://landmarkweb.jccal.org/landmarkweb
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
Originally posted by @Jason Cory:

This guy is all over Facebook trying to scam people. I especially enjoy when they use a gmail address.
If he's done any loans in Jefferson County you'll find a record on the landmark site.
http://landmarkweb.jccal.org/landmarkweb
you know people from up north think just because you have those great southern accents that some how our not as bright as others :) that's why he is trolling down there.
I do a lot of work in B ham have for a decade or more.. I can count on one hand the folks from my area that even know where Bessemer is other than me..
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Jason CoryPro Member
Real Estate Broker · Birmingham, AL · Member since 2018 · 264 posts · 381 votes
8y
Originally posted by @Jay Hinrichs:

Originally posted by @Jason Cory:
This guy is all over Facebook trying to scam people. I especially enjoy when they use a gmail address.
If he's done any loans in Jefferson County you'll find a record on the landmark site.
http://landmarkweb.jccal.org/landmarkweb
you know people from up north think just because you have those great southern accents that some how our not as bright as others :) that's why he is trolling down there.
I do a lot of work in B ham have for a decade or more.. I can count on one hand the folks from my area that even know where Bessemer is other than me..
Tell em ha.
1 Reply
Tony Marcelle
OP
Bessemer, AL · Member since 2014 · 581 posts · 32 votes
8y
@Jason Cory How do you navigate through landmarkweb to find private lenders?
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Tony Marcelle
OP
Bessemer, AL · Member since 2014 · 581 posts · 32 votes
8y
@Jay Hinrichs Birmingham is a big city. Bessemer is not as big and popular as Birmingham.
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Jason CoryPro Member
Real Estate Broker · Birmingham, AL · Member since 2018 · 264 posts · 381 votes
8y
Originally posted by @Tony Marcelle:

@Jason Cory How do you navigate through landmarkweb to find private lenders?
Type in the company name or a version of it. It's for records & documents not locating a private lender for your business.
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Tony Marcelle
OP
Bessemer, AL · Member since 2014 · 581 posts · 32 votes
8y
@Jason Cory Ok.
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Andrew SyriosPro Member
Moderator
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
8y
Originally posted by @Tony Marcelle:

@Jay Hinrichs No. He is not here in Alabama. He somehow found me online at another real estate investing network site from what he told me. I Google searched his name and company name but found nothing. I figured right then something was off about him. He said he is one those lenders who lends money nationwide in all states.
@Andrew Syrios @Greg Downey @Tom S. I talked to him again and asked if he charge upfront fees. You all were right. He said he does charge upfront fees, so I told him I will not be doing business with him. He then began to ask why I am no longer interested as if it matters because I told him no. I told him I am not paying upfront fees.
I think you made the right choice. There are other, lenders out there that don't charge upfront fees (other than appraisal costs and what not) that you should look to do business with.
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Will BarnardPro Member
Moderator
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
8y
I don’t know who this guy is but based on this thread, he sounds like a troll.
Point I want to make is that there is a DISTINCT difference between a private money lender and a hard money lender. Hard money is licensed, typicallyblends other peoples money, and they run a business based on loans. A private money lender is a private individual you know or have a relationship with such as a family member friend, business associate, dentist, doctor, etc and they are typically not licensed, they are not advertising or looking for you, you need to find them.
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