Contractor · Lehigh Acres, FL · Member since 2019 · 6 posts · 1 vote
I have a lender who is requiring me to give them my cc or debit card Info to charge $4.95 for a proof of funds letter. Is this a red flag or the norm for hard money? I've never gotten a hard money or private loan before so I'm clueless. Thanks
@Robert Beickert I have seen ALL SORTS of things get charged to people before...application fees, credit reports, etc. If anyone "drains" your credit card, you are protected since it was not an authorized charge. I don't think there's any concern there really. But my questions might be, how did you hear about this Hard Money Lender? Most investors work on referrals. Meaning, I want to work with lenders, contractors, property management companies, etc. that another investor REFERRED to me. That way, I can get their feedback and assurance on the vendor. Maybe the one you are using is very good, but they are trying to limit their costs for things. Dunno, but if they were referred, you could go back to your original person who referred them to you and see what their experience was like. Just something to think about.
Now, if you do need some referrals, for whatever reason, try posting in that state forum. Bigger Pockets has some great state forums and usually there are good locals that monitor those. Also, try some local real estate meetup groups. Meetup.com is a good resource for those but some post here on Bigger Pockets too.
I have a lender who is requiring me to give them my cc or debit card Info to charge $4.95 for a proof of funds letter. Is this a red flag or the norm for hard money? I've never gotten a hard money or private loan before so I'm clueless. Thanks
It's a scam. Once they have your card information they are likely to drain your account. Why do they need a proof of funds if they are doing the lending? Does he speak with a Nigerian accent?
You are already connected to @John Thedford in FL, why not contact him?
@Robert Beickert I have seen ALL SORTS of things get charged to people before...application fees, credit reports, etc. If anyone "drains" your credit card, you are protected since it was not an authorized charge. I don't think there's any concern there really. But my questions might be, how did you hear about this Hard Money Lender? Most investors work on referrals. Meaning, I want to work with lenders, contractors, property management companies, etc. that another investor REFERRED to me. That way, I can get their feedback and assurance on the vendor. Maybe the one you are using is very good, but they are trying to limit their costs for things. Dunno, but if they were referred, you could go back to your original person who referred them to you and see what their experience was like. Just something to think about.
Now, if you do need some referrals, for whatever reason, try posting in that state forum. Bigger Pockets has some great state forums and usually there are good locals that monitor those. Also, try some local real estate meetup groups. Meetup.com is a good resource for those but some post here on Bigger Pockets too.
No, not the norm for any legitimate hard money lender. This is just a clever way to obtain your credit card number, @Robert Beickert.
You’re doing this online with someone you’re never met and can’t verify. Yes?
Borrowing money like this should be done face-to-face with someone you can verify, and based on a relationship. You don’t need the web to do this. Nor should you. It’s dangerous.
Click here for a list of real estate clubs nearby to you, Robert. This day, you’d be hard pressed to toss a rock into any of these and not hit a legitimate lender.
I have a lender who is requiring me to give them my cc or debit card Info to charge $4.95 for a proof of funds letter. Is this a red flag or the norm for hard money? I've never gotten a hard money or private loan before so I'm clueless. Thanks
I would find another company. All you need to do to show proof of funds is provide a bank statement or 401K that has the money you're going to be using. Don't give out your c.c. information for something like this.