See below this is how a fake private lender approachs and interac

Private Lending & Conventional Mortgage Advice
7yFollow

See below this is how a fake private lender approachs and interac

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

I wanted to show an interaction that with a FAUX lender.. He sent me a PM on BP.. but it could easily be linkdin or facebook or Craigslist or connected investor.

this is classic interaction with these guys..

the website site is hacked I talked to the real owners of the company in Nashville and alerted them that their website is hacked.

but I love the hey let me send you my ID..

Be careful out there. !!!

Account Closed Sent 3 days ago

Report SpamBlock Account

I am also do funding for commercial and private property

Pro

Jay Hinrichs Sent 3 days ago

  • what kind of products do you have ?? rates and terms thanks

Account Closed Sent 3 days ago

Report SpamBlock Account

we do all type of loan ranging from real estate to business and personal loan and we give out at 5% intereste rate sir

Pro

Jay Hinrichs Sent 3 days ago

cool what do i have to do to get started.. this sounds awesome

Account Closed Sent 3 days ago

Report SpamBlock Account

how do i text you or shoot you messages

Account Closed Sent 3 days ago

Report SpamBlock Account

for more information and how to get started

Pro

Jay Hinrichs Sent 3 days ago

just use this site it works great.. what is your website and or company name ?

Pro

Jay Hinrichs Sent 3 days ago

I have a few deals teed up and need funding.. how fast can you fund.

one i need 75k and its a 120k property the other i need 92k and its a 155k prop

Account Closed Sent 3 days ago

Report SpamBlock Account

nice deal i can fund before the next seven days if we start the process right away sir

Pro

Jay Hinrichs Sent 3 days ago

ok whats your website or how do i fill out an application.. how do we get started.. I dont care for text messaging .. we cant do a loan over text.. whats next ?

Account Closed Sent 3 days ago

Report SpamBlock Account

Aiusallc.com

Account Closed Sent 3 days ago

Report SpamBlock Account

you can fill the application online there by applying sir

Pro

Jay Hinrichs Sent 3 days ago

your website does not show who the owners of the company are its just generic.

what is your NMLS registration number.. ?? cant be too careful these days.

is there any application fee ?

Pro

Jay Hinrichs Sent 3 days ago

your fix and flip minimum is 150k according to your site i only need 75k on one and 90 ish on the other one.

Account Closed Sent 3 days ago

Report SpamBlock Account

sorry for the delay of my reply, yes for the loan amount we can go below up to $75k since you are dealing with us for the first time, maybe i should send you my company entity number so you take a look on our legitimacy what about that?

Pro

Jay Hinrichs Sent 3 days ago

yes please do . that would be a big help thanks.

Account Closed Sent 3 days ago

Report SpamBlock Account

send me your mail so i send it over there sir

Account Closed Sent 3 days ago

Report SpamBlock Account

still waiying for your reply sir

Pro

Jay Hinrichs Sent 3 days ago

you can send it here.. i do not want to give out my e mail until i see your license number etc. cant be too careful these days as you know.

Account Closed Sent 3 days ago

Report SpamBlock Account

okay will forward it here together with the certificate of cooperation okay where the entity number was written sir

Account Closed Sent 2 days ago

Report SpamBlock Account

here is our entity number kindly review document of cooperation together with the entity

Entity.pdf
53.6 kB PDF Document user profile avatar Pro

Jay Hinrichs Sent 2 days ago

thats good were is your lender license and who owns the company there is no bios on the website who are we dealing with ?? thats important of course.

I filled out the app by the way. whats next ?

Account Closed Sent 2 days ago

Report SpamBlock Account

the company is not owned by an individual both set of investors coming together to achieve a goal, certificate of cooperation is more as a license sir, when i get your application form information i will immidiately forward you the terms and condition for the loan

Pro

Jay Hinrichs Sent 2 days ago

I filled it out and sent it in.. so there are no owners ?? how does that work.

Account Closed Sent 2 days ago

Report SpamBlock Account

there is a CEO to the company and am the CFO of the company

Account Closed Sent 2 days ago

Report SpamBlock Account

Check on your application form, you want $75000 for 1 year, but you didn't fill the application form very well no email no phone number why you still skeptical about me and my company maybe i can send you a copy of my ID so that will give you more confident and you know who you are dealling with dircetly

Pro

Jay Hinrichs Sent 2 days ago

yes that would work thank you

Account Closed Sent 2 days ago

Report SpamBlock Account

will do that soon in the next few hours

Pro

Jay Hinrichs Sent 2 days ago

OK i am going to go work out


Podcast Guest on Show #222
JLH Capital Partners51 Review
WebsiteView Page
16Reply
140 views

Most Popular Reply

Will Gates
Rental Property Investor · Maryville, TN · Member since 2018 · 80 posts · 53 votes
7y

"we can go below up to $75k" one of my favorite parts of reading this.

10Reply
See this reply in the discussion

54 Replies

Jump to latestLatest
  • Jay HinrichsBusiness Member
    OP
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y

    Hey all pass this around would you.. this will help a lot of newer investors and keep them from being scammed.

    @Russell Brazil@Steve Babiak@Steve Vaughan@Joe Splitrock@John Thedford@Will Barnard

    spread it around.. this is just crazy what these guys do .. between this and hacked wire instructions i bet the loss's to americans is in the Billions.. not just the millions.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    7Reply
  • Mike CumbieBusiness Member
    REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
    7y

    Also for the application fee can you go get Amazon gift cards and read me the numbers?

    8Reply
  • Will Gates
    Rental Property Investor · Maryville, TN · Member since 2018 · 80 posts · 53 votes
    7y

    "we can go below up to $75k" one of my favorite parts of reading this.

    10Reply
  • Jay HinrichsBusiness Member
    OP
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Mike Cumbie:

    Also for the application fee can you go get Amazon gift cards and read me the numbers?

    well it seems not a day goes by these days that someone does not get on BP and ask this question

    " is it normal for private investors to ask for up front fees ? "

    and I suspect the reason is they have had the same interaction I did.. 

    But its pretty consistent the way they walk folks through a progression to get them comfortable.

    the other thing they will do is say the reason they can do this is there is Insurance that you will buy in case yo cant make the payments.

    and of course there is no insurance for private loans :)  so they just steal that money as well.  

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    2Reply
  • Jay HinrichsBusiness Member
    OP
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Will Gates:

    "we can go below up to $75k" one of my favorite parts of reading this.

    there is many red flags however since many folks are starting their journey and they seem to think the holy grail is finding a private money lender thinking they are going to find this 5% money .. they just don't know what they don't know till its too late and they have lost money.  I think the only way to protect is to bring it to the sun light of what these guys do.

    I mean by now I would think 99% of the public that can get on a computer realizes that there are no Nigeran princes that need our help getting 50 million out of the country right ??? 

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    6Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    7y

    LOL :)

    0Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    7y

    @Jay Hinrichs great of you to peel back the curtain on behavior like this. Real estate is rampant with scams and dishonest practices. Simple things like verifying license numbers, hoping on Skype or verifying a persons photo ID are a good first steps in vetting a person. Personally, I won't work with a person I can't meet in person. I know that may be limiting me, but for me walking into an established business is just more secure.

    I am always shocked how many people fall for the old "just send me a few thousand and I will send you $100K" type scams. There are many variations ranging from inheritance to lottery. Same story every time, the money is wired and the receiving account is closed after the money goes overseas. 

    5Reply
  • Jay HinrichsBusiness Member
    OP
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Joe Splitrock:

    @Jay Hinrichs great of you to peel back the curtain on behavior like this. Real estate is rampant with scams and dishonest practices. Simple things like verifying license numbers, hoping on Skype or verifying a persons photo ID are a good first steps in vetting a person. Personally, I won't work with a person I can't meet in person. I know that may be limiting me, but for me walking into an established business is just more secure.

    I am always shocked how many people fall for the old "just send me a few thousand and I will send you $100K" type scams. There are many variations ranging from inheritance to lottery. Same story every time, the money is wired and the receiving account is closed after the money goes overseas. 

    Ya I am old school like that as well.  I like to eyeball and create relationships.. Especially lending side.. The only lender that I borrowed from that I did not meet in person was Lendinghome on a few deals.. every other lender I have meet in person.. I ask them to meet me at the project .. I want them to see in person what we are doing. it helps. 

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    3Reply
  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    7y
    Originally posted by @Jay Hinrichs:
    Originally posted by @Mike Cumbie:

    Also for the application fee can you go get Amazon gift cards and read me the numbers?

    well it seems not a day goes by these days that someone does not get on BP and ask this question

    " is it normal for private investors to ask for up front fees ? "

    and I suspect the reason is they have had the same interaction I did.. 

    But its pretty consistent the way they walk folks through a progression to get them comfortable.

    the other thing they will do is say the reason they can do this is there is Insurance that you will buy in case yo cant make the payments.

    and of course there is no insurance for private loans :)  so they just steal that money as well.  

    If these scammers lack sense enough not to attempt the same scam ploys with you Jay, arguably the 'most famous' lender, developer and contributor on this entire site, I can't imagine what they do to the new person without even a completed profile.

    I get them every now and then. Random offers of lending like from 'Diane Windsor' the other day.  I'm always like.. not too bright, are ya.  I am a known minimal debt interactor that posts often and didn't just fall off the cabbage truck,  Getting you banned from this site and completely shut down is about to be my new hobby of the day. 

    Good thing most scammers and thieves aren't very bright! Thanks for posting and shedding some light on what the underbelly of a snake can look like.

    4Reply
  • Eric L.
    Rental Property Investor · Clarksville, TN · Member since 2014 · 85 posts · 37 votes
    7y

    @Jay Hinrichs

    The bad grammar doesn't help, but who knows these days.

    I did fall into an up front money trap myself which was recommended here on BP. I say trap, but it probably wasnt. I just didn't realize the terms weren't going to work with anything I was doing.

    Solid post. It's a struggle looking for private investors, trust is a big issue! I've stuck with banks so far but with 4 loans now, I might be forced elsewhere soon.

    0Reply
  • Jay HinrichsBusiness Member
    OP
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Steve Vaughan:
    Originally posted by @Jay Hinrichs:
    Originally posted by @Mike Cumbie:

    Also for the application fee can you go get Amazon gift cards and read me the numbers?

    well it seems not a day goes by these days that someone does not get on BP and ask this question

    " is it normal for private investors to ask for up front fees ? "

    and I suspect the reason is they have had the same interaction I did.. 

    But its pretty consistent the way they walk folks through a progression to get them comfortable.

    the other thing they will do is say the reason they can do this is there is Insurance that you will buy in case yo cant make the payments.

    and of course there is no insurance for private loans :)  so they just steal that money as well.  

    If these scammers lack sense enough not to attempt the same scam ploys with you Jay, arguable the 'most famous' lender, developer and contributor on this entire site, I can't imagine what they do to the new person without even a completed profile.

    I get them every now and then. Random offers of lending like from 'Diane Windsor' the other day.  I'm always like.. not too bright, are ya.  I am a known minimal debt interactor that posts often and didn't just fall off the cabbage truck,  Getting you banned from this site and completely shut down is about to be my new hobby of the day. 

    Good thing most scammers and thieves aren't very bright! Thanks for posting and shedding some light on what the underbelly of a snake can look like.

    I was just glad I could copy and paste the interaction so folks can actually just follow along.  And when the pitch goes this way they will know its fake.. 

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    3Reply
  • Jay HinrichsBusiness Member
    OP
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Eric L.:

    @Jay Hinrichs

    The bad grammar doesn't help, but who knows these days.

    I did fall into an up front money trap myself which was recommended here on BP. I say trap, but it probably wasnt. I just didn't realize the terms weren't going to work with anything I was doing.

    Solid post. It's a struggle looking for private investors, trust is a big issue! I've stuck with banks so far but with 4 loans now, I might be forced elsewhere soon.

    Bottom line private lenders are just that people you meet in person.. they do not advertise. ( Rare exceptions) and if they do then they are HML there has been a shift with some HML to say they are private to give the borrower an illusion of cheaper rates.. Keep in mind that anyone can pay to advertise on any of these sites.. no one should get a pass just because they are on BP.. or have a lot of posts etc. myself included.. There was a guy on this site named Wendell De Guzman who was a complete fraud.. but he posted a ton and lots of people followed him you had Handy Andy down in ATL.. some Bp folks got in a mess with him.. so on and so forth.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    3Reply
  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    7y

    @Jay Hinrichs Thanks for sharing.  I've googled several "lenders" I've found on BP only to immediately find links to "Ripoff Report" and other fraud articles from the past.  Amazing how many people do this, go to jail for it, and come back out and do it again.  

    Truthfully, common sense is the only way to avoid these types of people.  To be honest, I don't even like to entertain borrowers reaching out to me who type in all lower case and only send one sentence responses/introductions like that guy.  

    BP does an ok job of taking care of these people in a timely fashion and I think they'll get even more aggressive over time.  At least I hope. 

    As a Loan Officer, I'm honestly always expecting people to try and linkedin/facebook stalk me or google my NMLS which is great!  I'd do the same thing if someone read one of my posts and reached out in an online forum like this to see if they could help secure financing.   

    [email protected]818-606-8823
    Investor Property Loan5306 Reviews
    WebsiteView Page
    3Reply
  • Jay HinrichsBusiness Member
    OP
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Alex Bekeza:

    @Jay Hinrichs Thanks for sharing.  I've googled several "lenders" I've found on BP only to immediately find links to "Ripoff Report" and other fraud articles from the past.  Amazing how many people do this, go to jail for it, and come back out and do it again.  

    Truthfully, common sense is the only way to avoid these types of people.  To be honest, I don't even like to entertain borrowers reaching out to me who type in all lower case and only send one sentence responses/introductions like that guy.  

    BP does an ok job of taking care of these people in a timely fashion and I think they'll get even more aggressive over time.  At least I hope. 

    As a Loan Officer, I'm honestly always expecting people to try and linkedin/facebook stalk me or google my NMLS which is great!  I'd do the same thing if someone read one of my posts and reached out in an online forum like this to see if they could help secure financing.   

    problem with some states ( majority) is that NMLS is not required for commercial purpose 1 to 4.. so unless they are also doing owner occ. license not required.. But if they are in CA  OR NV and 9 other states its is required..  So when you see these guys say they lend in all 50 states that's a huge red flag..   Its just classic bait and switch offering rates that the borrowers simply do not know don't exist in the commercial world. The borrowers just look at rates by Rocket mortgage and don't realize those are not the rates one can get for investment properties only owner occ 

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    2Reply
  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    7y

    Jay Hinrichs

    Hi Jay,

    You know, this topic just might make a good selling eBook here on BP.

    Seems like it would benefit a lot of people.

    Just my thoughts.

    Scott...

    0Reply
  • Jay HinrichsBusiness Member
    OP
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Scott Mac:

    Jay Hinrichs

    Hi Jay,

    You know, this topic just might make a good selling eBook here on BP.

    Seems like it would benefit a lot of people.

    Just my thoughts.

    Scott...

    Yup I wrote an E book bout 6 years ago for Aussie investors who were getting hammered by US and Aussie sellers of rental props.. they did not know what they did not know.. and just figured Cheapo real estate would pay like expensive real estate.. lots of foreigner were sucked into buy useless junk.. and perpetuated the urban blight.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    7y
    Originally posted by @Jay Hinrichs:
    Originally posted by @Eric L.:

    @Jay Hinrichs

    The bad grammar doesn't help, but who knows these days.

    I did fall into an up front money trap myself which was recommended here on BP. I say trap, but it probably wasnt. I just didn't realize the terms weren't going to work with anything I was doing.

    Solid post. It's a struggle looking for private investors, trust is a big issue! I've stuck with banks so far but with 4 loans now, I might be forced elsewhere soon.

    Bottom line private lenders are just that people you meet in person.. they do not advertise. ( Rare exceptions) and if they do then they are HML there has been a shift with some HML to say they are private to give the borrower an illusion of cheaper rates.. Keep in mind that anyone can pay to advertise on any of these sites.. no one should get a pass just because they are on BP.. or have a lot of posts etc. myself included.. There was a guy on this site named Wendell De Guzman who was a complete fraud.. but he posted a ton and lots of people followed him you had Handy Andy down in ATL.. some Bp folks got in a mess with him.. so on and so forth.

     Even some podcast guests have been accused of taking advantage of investors. People need to understand that neither BP or really no website is vetting people. 

    You have to do your own due diligence in all aspects of business. I had a friend recommend a local investment that turned out to be a total scam. It was an organic fish farm - sounds boring and hardly what you would expect from a scam. The people running the scam had a nice office and smooth pitch. They targeted dentists and doctors, then used that as credibility for getting other investors. Saying "Doctor XYZ invested" as a way to lend credibility. Ultimately it turned out the two founders were a total fraud. They had lied about relationships and even their college credentials was a lie. They had not paid rent on the office space for months. If any of the investors had just made a couple phone calls, they would have been caught earlier. All they had in the end was a fancy PowerPoint and a high rent office down town.

    Funny thing about targeting dentists and doctors (watch the movie Boiler Room) is that you have smart people, who are usually not financially smart, but have big egos. The scammer uses their intelligence and pride to talk them into things. They play off the ego by saying things like, "well you understand how these things work". So instead of the doctor or dentist saying, "no, I have no idea, please explain" they will usually just agree. This leaves high income professionals as a major "mark" for scammers.

    Me personally, I am never ashamed to admit when I don't understand. I am the annoying guy in the audience that has ten questions at the end of the presentation. Every time people walk up to me afterwords and say, "I am glad you asked those questions, I didn't understand it either".

    8Reply
  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    7y

    @Jay Hinrichs I originate a good amount of commercial mortgages nationwide myself.  I never say 50 states because nobody wants to lend money in places like the Dakotas, Detroit, Flint, and a few other places with super tight lending laws like Utah and TN.  I'm only licensed in California but like you said many national wholesale lenders as well as hard money lenders will allow you to originate under their license.  A few of these lenders don't even have retail divisions meaning the only way they issue loans is via brokers.  

    I feel like I provide value even to those people too far to meet in person because their typical "mortgage guy" in town has been doing this forever (too long) and has no idea what's going on in the Non QM and investor world.  

    Some of my best clients live across the country from me and we work together on a consistent basis.  I will say it is possible to build trust through transparency and good communication.  

    [email protected]818-606-8823
    Investor Property Loan5306 Reviews
    WebsiteView Page
    2Reply
  • Jay HinrichsBusiness Member
    OP
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Joe Splitrock:
    Originally posted by @Jay Hinrichs:
    Originally posted by @Eric L.:

    @Jay Hinrichs

    The bad grammar doesn't help, but who knows these days.

    I did fall into an up front money trap myself which was recommended here on BP. I say trap, but it probably wasnt. I just didn't realize the terms weren't going to work with anything I was doing.

    Solid post. It's a struggle looking for private investors, trust is a big issue! I've stuck with banks so far but with 4 loans now, I might be forced elsewhere soon.

    Bottom line private lenders are just that people you meet in person.. they do not advertise. ( Rare exceptions) and if they do then they are HML there has been a shift with some HML to say they are private to give the borrower an illusion of cheaper rates.. Keep in mind that anyone can pay to advertise on any of these sites.. no one should get a pass just because they are on BP.. or have a lot of posts etc. myself included.. There was a guy on this site named Wendell De Guzman who was a complete fraud.. but he posted a ton and lots of people followed him you had Handy Andy down in ATL.. some Bp folks got in a mess with him.. so on and so forth.

     Even some podcast guests have been accused of taking advantage of investors. People need to understand that neither BP or really no website is vetting people. 

    You have to do your own due diligence in all aspects of business. I had a friend recommend a local investment that turned out to be a total scam. It was an organic fish farm - sounds boring and hardly what you would expect from a scam. The people running the scam had a nice office and smooth pitch. They targeted dentists and doctors, then used that as credibility for getting other investors. Saying "Doctor XYZ invested" as a way to lend credibility. Ultimately it turned out the two founders were a total fraud. They had lied about relationships and even their college credentials was a lie. They had not paid rent on the office space for months. If any of the investors had just made a couple phone calls, they would have been caught earlier. All they had in the end was a fancy PowerPoint and a high rent office down town.

    Funny thing about targeting dentists and doctors (watch the movie Boiler Room) is that you have smart people, who are usually not financially smart, but have big egos. The scammer uses their intelligence and pride to talk them into things. They play off the ego by saying things like, "well you understand how these things work". So instead of the doctor or dentist saying, "no, I have no idea, please explain" they will usually just agree. This leaves high income professionals as a major "mark" for scammers.

    Me personally, I am never ashamed to admit when I don't understand. I am the annoying guy in the audience that has ten questions at the end of the presentation. Every time people walk up to me afterwords and say, "I am glad you asked those questions, I didn't understand it either".

    For sure ,  Morris comes to mind.. and of course there is Thernos  that one was a Billion dollar fraud I believe.    

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    0Reply
  • Jay HinrichsBusiness Member
    OP
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y

    @Alex Bekeza  I have been toying with firing up my NMLS and State of Oregon license currently they are current for CE but inactive..  was working with Peer st. to bring deals to their platform.

    but Oregon does not allow table funding unless your licensed in the state.. so I would have to make the mortgage fund it for 3 to 5 days then they buy it.. unless I had a lot of volume just too much work for me when I would have to personally put up the 300 to 500k our average loan is and then get paid back in 5 days all for a point or so.. margins too thin.

    Now brokering I get if its not your money at the closing table. 

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    0Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    7y
    Originally posted by @Alex Bekeza:

    @Jay Hinrichs I originate a good amount of commercial mortgages nationwide myself.  I never say 50 states because nobody wants to lend money in places like the Dakotas, Detroit, Flint, and a few other places with super tight lending laws like Utah and TN.  I'm only licensed in California but like you said many national wholesale lenders as well as hard money lenders will allow you to originate under their license.  A few of these lenders don't even have retail divisions meaning the only way they issue loans is via brokers.  

    I feel like I provide value even to those people too far to meet in person because their typical "mortgage guy" in town has been doing this forever (too long) and has no idea what's going on in the Non QM and investor world.  

    Some of my best clients live across the country from me and we work together on a consistent basis.  I will say it is possible to build trust through transparency and good communication.  

    The Dakotas have super tight lending laws? That is surprising, can you explain. I would have thought California would have more restrictions on lending. In So. Dakota we attract a lot of credit card and trust business, specifically due to our advantageous banking laws. I always assumed people omitted the Dakotas due to low population. What is it that makes it harder to lend?

    0Reply
  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    7y

    @Joe Splitrock Correct.  I mentioned the Dakotas because of population.  I really cannot originate a commercial mortgage in a town of less than 25k people or within 25 miles of a town with 100k people. In these types of towns, a local bank's commercial department might be the best bet.  Detroit/Chicago/Flint because of local economics.  I should have distinguished. 

    I'm not an expert as to why this is the case but many lenders list the same small list of states on the list where they don't lend.  Most common you'll find ND, SD, TN, UT and VT.  I believe TN is considered a "brick and mortar" state meaning you'll need a physical presence in that state to lend there.  I'd like to learn more about why these states get blacklisted by national wholesale lenders but I'm assuming its just a bunch of red tape that makes it tough to do business.  

    @Jay Hinrichs I think table funding is very interesting.  Not something I've done myself though.  Maybe someday.  Perhaps I'll reach out for some advice when I reach that cross road.   

    [email protected]818-606-8823
    Investor Property Loan5306 Reviews
    WebsiteView Page
    1Reply
  • Matt Millard
    Lewisville, TX · Member since 2015 · 343 posts · 264 votes
    7y

    @Steve Vaughan I got the messages from Diane F as well & tried to take her through similar sequence til her account was closed by BP!

    So much fraud out there. Good we are bringing it to light!

    2Reply
  • Jay HinrichsBusiness Member
    OP
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y

    @Joe Splitrock as it relates to your state just the fact that they need a state license and NMLS registration is why its difficult. only 12 states require it.. so its just as difficult in CA and it is in SD and in Oregon for that matter.. the rest of the states NO license required.. and NMLS is a major pain for smaller HML we have to do what's called a mortgage call report quarterly and think of a government backed website.. and just think how hard that is for guys of my vintage to negotiate I never get it right I always have deficiencies from the state.. and I spend at least an hour on the help line. LOL A lot of mortgage brokers left the business once you had to pass the test which was pretty difficult for the HML guys .. I passed first time. My partner at the time an attorney he missed it first time.. and then there is annual CE which I still do.. etc etc.

    CA. you can lend private money 3 ways.. RE Broker ( that's what I have and do) Consumer finance license (many have this) and state mortgage originator and NMLS.. anyone of these works. for Non owner occ. the Brokers license you cannot do owner occ.

    Joe I am talking about non owner occ commercial purpose loans on 1 to 4 units..  12 states require the full marry ann. and TN has a special license as well.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
  • Jay HinrichsBusiness Member
    OP
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Alex Bekeza:

    @Joe Splitrock Correct.  I mentioned the Dakotas because of population.  I really cannot originate a commercial mortgage in a town of less than 25k people or within 25 miles of a town with 100k people. In these types of towns, a local bank's commercial department might be the best bet.  Detroit/Chicago/Flint because of local economics.  I should have distinguished. 

    I'm not an expert as to why this is the case but many lenders list the same small list of states on the list where they don't lend.  Most common you'll find ND, SD, TN, UT and VT.  I believe TN is considered a "brick and mortar" state meaning you'll need a physical presence in that state to lend there.  I'd like to learn more about why these states get blacklisted by national wholesale lenders but I'm assuming its just a bunch of red tape that makes it tough to do business.  

    @Jay Hinrichs I think table funding is very interesting.  Not something I've done myself though.  Maybe someday.  Perhaps I'll reach out for some advice when I reach that cross road.   

    You really need a 5 million dollar or so LOC from a commercial bank at prime to make that work..

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free