Private lender deal structure — deal or ripoff?

[Derek Jones]

I own my primary home and have 2 single family rental properties. My goal is to have 20 rentals by 2019 but I keep losing deals to cash buyers. After listening to the Bigger Pockets podcast I asked my agent to intro me to a private local lender. He sent the following terms:

The terms will be 10% down at about 7.5%, at least 6 months before you could refi, but would carry the loan for up to 2 years. The loan fees would be 5900.00 flat, which is about the same as closing costs with a conventional lender.

Also, if there is the possibility of multiple homes you want to purchase, after the first he may consider taking 5% down. The great news is that we could close very fast.

Is this a fair offer?

[Jay Hinrichs]

again great deal for a two year loans.. especially if its a 100k property .. 95% of investors on this site would snap that up.. you better grab it before they loan it to someone else.

but don't get fooled into paying anything up front.. lots of frauds out there stealing money.

they will say your approved just need to send 500 dollars or they might say you have to pay the whole 5700 up front before you close.. DO NOT DO THAT chances are your money will be stolen.