Watch out for Private Lender Scam

Watch out for Private Lender Scam

Michael JonesPro Member
Real Estate Agent · Oklahoma City, OK · Member since 2018 · 50 posts · 17 votes

Scam email back and forth 
From Carla Morrison (Scam):

Good day. I'm a private lender I offer general financial services including real estate loans, various purchase funding, personal loans and business startups loans. Please get back to me for more information if interested. Okay, I disburse loans at a 5% interest rate with 3 months repayment grace and no prepayment penalty. Loan amount ranges from $10,000 to $50,000,000Loan Duration ranges from 1 months to 30 years. There's a security deposit required before finding.
How much is the loan amount in request?
Why not fund everything so you can achieve it all ? What is the duration of the loan ?
The loan duration ranges from 1 months to 30 years. I don't know your financial status, so can't really decide when you can repay the loan. What do you think is best for you?

Here's a well calculated term for your loan repayment;

Note: The monthly loan payment was calculated at 359 payments of $375.78 plus a final payment of $371.73

Looks good?

The security deposit is $3,850.

Okay, I can't give you a call now but I sure will. How do you intend on receiving the loan funds ?
The security deposit is a fundamental commitment from the borrower to the lender before the loan amount is disbursed. No payments will be made until both lender and borrower have signed a binding contract. This amount is usually refunded at the end of the loan duration if the borrower repays the loan successfully. It is used as substitute for the loan incase borrower doesn't repay the loan.
Please let me know if you have any other questions. Meanwhile, fill out the loan application and send back a signed copy asap to proceed with the loan application.
Carefully fill out all required information on the loan application form and send back a signed copy.
Thanks



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Most Popular Reply

Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
6y

@Eric Schrader  You'd be wise to be careful.  What @Michael Jones posted certainly appears to be a scam.  (Loans don't have "security deposits".)  

And just because a brand new user (David Ertel above) comes along (who by the way just joined today and only has 3 posts as of right now, all of which are in this thread) and says it's legit, doesn't make it so.

So do your own due diligence.  I don't want to see anyone get scammed.  There's a lot of that going around online.

See this reply in the discussion

31 Replies

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  • Member since 2020 · 1 post · 1 vote
    6y
    Seems legit.
  • Michael JonesPro Member
    OP
    Real Estate Agent · Oklahoma City, OK · Member since 2018 · 50 posts · 17 votes
    6y
    Originally posted by @Account Closed:
    Seems legit.

    Definitely not legit...  Also meant to say watch out... 

  • Member since 2020 · 7 posts · 0 votes
    6y
    She funded my loan last month. She's right on point legit!
  • Michael JonesPro Member
    OP
    Real Estate Agent · Oklahoma City, OK · Member since 2018 · 50 posts · 17 votes
    6y
    Originally posted by @Account Closed:
    She funded my loan last month. She's right on point legit!

    Interesting, please explain...

  • Engineer · Fawn Grove, PA · Member since 2015 · 93 posts · 10 votes
    6y

    @David Ertel  

    do you have contact info for the lender?  i am interested .

    regards

  • Member since 2020 · 7 posts · 0 votes
    6y
    I have nothing else to explain as she already gave you all the information. Go through them and work with her ask her any questions if you're confused,you'll be shocked. I was funded in 2 business days after providing the requirements she asked for. So I'm very sure you didn't work with her.
  • Member since 2020 · 7 posts · 0 votes
    6y
    Yes I have her contact
  • Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    6y

    @Eric Schrader  You'd be wise to be careful.  What @Michael Jones posted certainly appears to be a scam.  (Loans don't have "security deposits".)  

    And just because a brand new user (David Ertel above) comes along (who by the way just joined today and only has 3 posts as of right now, all of which are in this thread) and says it's legit, doesn't make it so.

    So do your own due diligence.  I don't want to see anyone get scammed.  There's a lot of that going around online.

  • Member since 2020 · 7 posts · 0 votes
    6y
    @Kyle J. Biggerpockets is not the only professional site in the world to meet with investors. Because I signed up here recently doesn't mean I'm a newbie in the real estate world, I've worked  with several investors including Carla herself who funded my deal. Go online,find out about her company and work with her before you err out anything good or bad. How come you judge so easy from afar? One thing we should all do is not to conclude too easy. You get your info before you err out anything. @Eric Schrader try her out , confirm by yourself. You'll still be the one to come testify in this same forum. @Michael Jones I really think you should work with her first before concluding negatively. Thank you.
  • Michael JonesPro Member
    OP
    Real Estate Agent · Oklahoma City, OK · Member since 2018 · 50 posts · 17 votes
    6y

    @Kyle J.

    @Account Closed

    Exactly!  I know this is a scam.  Definitely interesting that David Ertel is a new user as of today.  Eric don’t fall for these tactics.  Just realize that most lenders don’t ask for money up front and usually get paid through a closing process.
    v/r

    Mike

  • Rental Property Investor · Atlanta, GA · Member since 2020 · 11 posts · 3 votes
    6y

    Definitely a scam. 

    The question of "how will you be receiving funds?" so early in the process, buried in the email. 

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Account Closed:
    Seems legit.

    your being facetious  :)   these scammers bad english terms that only exist for owner occ full underwritten files.

    money up front ..  but you know beginners who never have borrowed money get fooled into these things every day..

  • Investor · Sugar Hill, GA · Member since 2014 · 168 posts · 97 votes
    6y

    Scam. 

    There are multiple indicators of a scam here:

    1) up front "security deposit".   No real hard money lender will ask for money up front. 

    2) "i can't call now".  The scammer does not want to reveal phone number, sex or accent. 

    3) "How do you intend to receive funds"  Irrelevant a this time. is intended to give you the illusion of getting the money.  

    4) Bad English grammar.  

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Michael Jones:

    @Kyle J.

    @Account Closed

    Exactly!  I know this is a scam.  Definitely interesting that David Ertel is a new user as of today.  Eric don’t fall for these tactics.  Just realize that most lenders don’t ask for money up front and usually get paid through a closing process.
    v/r

    Mike

    Too funny..  Plus the security deposit is refunded at the end of the loan..  like I said only people that fall for this are those that just dont know any better and dont understand this is a very large scam being played out daily in our real estate world..  bad english.. terms too good to be true  significant up front money  etc etc.. just a big bunch of sleezy fraud is all it is. 

  • Lender · Los Angeles, CA · Member since 2009 · 1k+ posts · 2k+ votes
    6y

    Dear Ms. Morrison,

    Thank you for the kind offer to loan me such a substantial sum of money.

    With Treasuries in the 2 to 4% range, I’m honored you would trust me, a barely experienced stranger you found anonymously on the internet, with your money at just over the same rate. I’m also impressed you trust me as much as the full faith and credit of the United States government or even triple A bonds, which pay higher. It’s not since I won the Nigerian national lottery, that I’ve been so fortunate. This is truly my lucky day so thanks for the unique opportunity to borrow money at such a below market rate.

    As you know, hard money loans from legitimate lenders are typically in the 10% to 12% ballpark plus a few points, so I see a great opportunity here to take advantage of the spread. With that in mind, let’s dispense with a mere $70,000 loan. I’m sure that’s chump-change to a professional like you. I’d like to go for the full $50 million.

    For such a substantial sum, we would just pay our own expenses which naturally, would be trivial. I could set up a trust account where you would simply send the money via Western Union. Does offshore work for you? I’d normally ask a few additional questions but you’re obviously legit since yet another stranger vouched for you on BiggerPockets. That’s good enough for me.

    Time is of the essence here, Carla. You’re obviously a woman who knows what she’s doing so let’s move forward ASAP, where you quickly can deploy that $50 million.

    Respectfully,

    Jeff S. 

  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    6y

    Legit lenders don’t ask for any money, including a “security deposit” (which is never done in loans) upfront and the only time that would happen is for paying for an appraisal, which is more often paid out from your hud1 closing statement anyways.

    Looks like the typical scam to me and that was backed up by a new user touting how real it is with the same poor grammar.

    One way to find out for sure, let her know I have Beach front property with 5 acres I need financing on for $25,000,000 in Nevada, need funds in 48 hours.

  • Real Estate Investor · Washington, DC · Member since 2014 · 236 posts · 328 votes
    6y
    Originally posted by @Account Closed:
    She funded my loan last month. She's right on point legit!

    Hi Carla!  LOL

  • Member since 2020 · 7 posts · 0 votes
    6y
    So much Negative energy here all of you... What a pity that there are so many lenders but investors are still on the look for financing.

    Why ?
  • Member since 2020 · 7 posts · 0 votes
    6y

    Today I found out that majority of the loan ads have not been funded and there are so many lenders here. Why don't you lenders here fund these deals ? Your "no lender charge fees" seems to be an illusion. I want the reasonable ones here to look around and tell me the dates of the most recent loan posts and confirm with the investors if they've been funded by any of the lenders on this platform. That's your assignment for today guys. I need proof that what you say about lenders not charging any fee is true or just an illusion.  Look around. Thanks

  • Member since 2020 · 7 posts · 0 votes
    6y
    @Michael Jones What out for private lender scams?? Were you in a hurry to post this that you couldn't cross check ?
  • Michael JonesPro Member
    OP
    Real Estate Agent · Oklahoma City, OK · Member since 2018 · 50 posts · 17 votes
    6y

    Too funny!  Thank you for the backup from this great community of real estate professionals.  It’s a shame these scammers are out here trying to ruin a good thing and taking advantage of new investors.  Not me, not today!

  • Michael JonesPro Member
    OP
    Real Estate Agent · Oklahoma City, OK · Member since 2018 · 50 posts · 17 votes
    6y

    @Account Closed yes I was in a hurry to expose this nonsense.  Also reported you...

  • Lender · Los Angeles, CA · Member since 2009 · 1k+ posts · 2k+ votes
    6y

    Everyone take a breath.

    To be fair, Carla Morrison could be a legitimate lender running an honorable business. There are a lot of scammers out there using fake websites and soliciting borrowers using the identity of real lenders. Since the information for most loans, licenses, and LLC's is in the public records, this is an incredibly easy scam to pull off. It's difficult to detect and very hard to stop. I know, because we are going through that now.

    I could create a beautiful website spoofing Carla Morrison and point to her license and LLC. You could go online and confirm that these are in good standing. By looking up her loans, the website would also show fancy photos of recent deals from the MLS that she really and truly closed. Then, I could go on BP and solicit business from anyone willing to respond to an anonymous solicitation. I would point to the website for legitimacy. With a Google voice number, you wouldn't know that the woman who answered was not Carla Morrison.

    My letter above, was obviously written in jest. And thankfully, the email in Michael's post did not point to a website. However, there are many on this board, some I know have more experience than you’d imagine, who will cheerfully wire money to these scoundrels. If you want to see an unfortunately long, and growing list of scam sites, read my recent post in this thread.

  • Edmond, OK · Member since 2012 · 456 posts · 270 votes
    6y

    Another example fresh from a BP Scammer, looking to scam investors seeking refinance rates.

    So, I google Aaron Chapman and sure enough there is a website with a hipster's picture and an NMLS number, the whole works. I call and it goes to voicemail. I leave my name and number and immediately get a text (reminds me of a Craigslist scam where they refuse to talk to us in person and hide their accent behind texts). Shortly after, I get the below email which Gmail has swiftly moved to the spam folder.

    Advice : Do not fill out mortgage applications on websites that look legitimate. Talk to a person, get their email, and send info only after verifying the person/organization really exists.

  • Accountant · Orcutt, CA (93455) · Member since 2019 · 58 posts · 21 votes
    6y

    @Will Barnard of Barnard Enterprises Inc. ...I know for a fact you are legit because just this morning I was reading "The Book on Investing in Real Estate with NO (and low) Money Down" by Brandon Turner and noticed your Picture while scrowling down this thread.  I researched you and the other 3 people, plus one couple, who were featured in the book. 

    Unfortunately, I too have had this experience with scammers flooding my email with "to good to be true" deals.  I have studied and researched for the past 3 months what to really look for and these are the three things I have learned when vetting a potential "private lender"

    1. Never pay UPFRONT money = I asked at least 20 professionals in the RE business this question. The over whelming response was just that. 

    2. You should put the private lender on first deed and have them insured (note) so that they are completely safe and can foreclose if you don't fulfill your end of the bargain.   IF a private lender is willing to fork out $500k and doesn't want anything in returen. = SCAM.

    3. 5% on a $500k loan without it being a bank is nonsense.  I have learned that in most cases, a private lender will most likely be as low as 6% and usually 10%-14% depending on the deal.  Of course, there are numerous scenarios and negotiation tactics that can alter this. 

    This is coming from a newbie (me) who is still looking to get into his first deal.  Not some season professional.  As I start my RE investing journey I understand that there are going to be some pretty unethical people out there.  However, I will definitely do my due dilligence especially since I just started and this is the first tast of what I have received from the RE investing world.  This is a marathon, not a sprint.  I have time and I will make sure that when I do pull the trigger, I will be covered.

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