Private Lender Scam?

Question

I need some funding for a fix and flip. I use a website Cix.com to get some lenders to contact me. One of them is Seabrook Investment LLC. The lender is Timothy Holbrook. I just want to ask if anybody has been scammed or worked with him? Or if he is legitimate? He asked for origination fees, and then asked for collateral fees. So I'm getting very suspicious. Cix.com says that they vetted all their lenders, but I emailed them and they say he's not on their list. Can anybody advise?

Richard Sherman · Answer

@Jay Hinrichs is right as usual...haha...I need to automate a script to just post "I agree with Jay" after everything he writes..hahah

Melvin List · Answer

@Bruce Yin My advice is to never pay someone money up front.  I know many hard money lenders and the only thing that is paid up from is the appraisal.  I licensed loan officer would be breaking the law asking for origination fees upfront.

Jeff S. · Answer

You and I have never spoken, @Jon Parton.  We do not own the website I suspect you looked at.  In fact, until recently, we never owned a website since we find all our borrowers locally here in Los Angeles at real estate clubs.  We do not loan outside of Los Angeles.  Nor will we loan to you unless you flip houses locally and we’ve personally met each other, face-to-face. Please look at my profile.

The phone number from the website that you called is not our phone number.  It’s probably a Google Voice number.  The individual you spoke to probably said he was me.  He wasn't.  I understand he has a foreign accent.  I do not.

You were scammed.  If you PM me with your phone number I will call you and let you know what we are doing about this, how you could help, and how you might be able to recover your money.

Rest assured we are taking this very seriously, but since it is ongoing, I will not disclose anything else publicly.

In spite of the slick reassurances, the best thing anyone can do to avoid being scammed is to NEVER send personal information or up-front money to strangers for any reason.  This includes nominal amounts for even a credit check or appraisal.  Many lenders don’t use these.  We don’t.

Jay Hinrichs · Answer

Bruce glad you asked you are being 1000% scammed..  no lender works that way.

unless your doing some 5 to 50 million dollar deal.. and they need a nice chunk like 10 to 20k for due diligence up front.. but that is with a lender that you can verify if they are real.

the internet is full of these scammers.. its just the real estate lending version of the Nigerian prince schemes..

ask for little amount 500 to 800  get you to the next level then they need a little more then a little more then OH your loan was turned down sorry bout that..   that's how these play out.

the other HUGE red flag is when they say you need to buy insurance to guarantee the payments.. that's why they can do the loans.

Well news flash there is NO mortgage insurance for fix and flip loans.. there is only PMI on federally regulated loans  .. period.

I had one guy one of my investors who I was humoring .. so I played along.. lender was in the middle east you could tell total scam

but then we had to buy this mortgage performance insurance from and insurance company in Thailand  YA right LOL..

I finally told my client this is all the new scams.. but I played along to see where it would go.

And these guys will come at you on BP as well.. they can backdoor the system through the Mobil app..  so they keep sending you PM's even though their account is closed.. I know BP I working on a patch for that.

Jon Parton · Answer

@Jeff S. Thank you for responding.  This man is definitely not you but is posing as you.  I sent you my phone number.  Thank you for commenting.

Jay Hinrichs · Answer

@Jeff S.  I have had this happen to me as well..  mainly some folks using me as a reference when I have never heard of them.  and for sure fake lenders using other real lenders creds

Michael Ablan · Answer

@Bruce Yin -  Just echoing the sentiment in the room here.  Stay away.  Only fee I ever pay up front is for appraisal.

Jon Parton · Answer

Same with Jeffery Smallowitz of private lending direct llc ... not the same smallowitz on here... I think.  424 are codeI paid for an appraisal and an inspection fee against my better judgement. I got really suspicious when he demanded I pay 3 points ahead of time and not through the title company. Hes gone. Money is gone. Lesson learned. This was one of my more stupid decisions in life.

Ann Marie Rosen · Answer

Yes, no need to pay any money up front , and if CIX confirmed he is not a lending partner of theirs, then that may be your answer.

Michael Facchini · Answer

Happy to direct you.  Will PM so I can get more about the scenario.

Private Lender Scam?

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