Hard Money/Private Money- Real or Scam?!?

Private Lending & Conventional Mortgage Advice

Hard Money/Private Money- Real or Scam?!?

Rental Property Investor · Baltimore, MD · Member since 2020 · 26 posts · 20 votes

So I am looking for some hard money/private money for brrrr investing and I have so many people asking me if I need a loan, but then I have other people telling me to watch out for scammers. I am new to this lending thing, what should I look out for as far as scammers? How can you tell the difference between the real thing, and what kind of scams do these people run?

Thank you in advance for your response.

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Jay HinrichsBusiness Member

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

I wrote a blog on it for BP if you can find it.

but normally any up front fee other than apprasial or modest app fee to cover credit report is a red flag.

rates too good to be true ESPECIALLY now rates jumped up a bunch

and right now first time borrowers are going to have a really hard time finding anyone to do a deal with them without 50% cash down or right about there.

bad english

approve you too quick just send 500.00 bucks..

paying points before the loan closess.

bad website or no website.

you want to stick with the ones that are well known here is a few.

Lima one
Lendinghome
Lendingone
Renovo
Aloha
Civic
Iron Bridge

all of the above are real.

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Odie Ayaga
Specialist · Delran, NJ · Member since 2016 · 2k+ posts · 951 votes
6y
@Tom Murphy you're looking for hard money for this stable rental portfolio?
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Tom Murphy
Rental Property Investor · Salisbury, NC (Charlotte area) · Member since 2019 · 39 posts · 5 votes
6y
Either hard money or a private investor Odie.
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Odie Ayaga
Specialist · Delran, NJ · Member since 2016 · 2k+ posts · 951 votes
6y
How big is the portfolio (i.e. how many properties)? Why are you seeking hard money vs conventional?
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Tom Murphy
Rental Property Investor · Salisbury, NC (Charlotte area) · Member since 2019 · 39 posts · 5 votes
6y
Seven SFH, one duplex and one triplex. Most of them are in Charleston, WV proper but three are in the suburb Dunbar, WV. Stable tenants with leases through January 2021. Hard money due to one of the owners not having a W-2 for the past two years (he will be able to verify via his 2019 taxes though). Appraisals were done and underwriting performed via ShareStates two weeks ago. We were within two days of closing when ShareStates stopped lending.

please email or call me if you have additional questions Odie. Thx.

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Tadela Tedemet
OP
Rental Property Investor · Baltimore, MD · Member since 2020 · 26 posts · 20 votes
6y
Update: So the people messaging me were definitely scammers. After asking me for all these documents, I never replied. I get a call asking why I wasn't following up with the loan process. #1 they never even asked me for any deal info. #2 the man on the phone was definitely Nigerian (not a racial thing I'm African as well, Ethiopian), but the person on the picture of the email address was a white guy with a very American name (Bill Smith or something), and the Nigerian guy couldn't even pronounce the name :/ then the next email he sent had grammatical and spelling errors. So thank you everyone for all your red flags and tips. I'll stick to BP and my local REIA for referrals for now. I have good credit, a little cash in the bank, but no deals under the belt and I am young (if thats even considered a risk factor, I see a lot of successful RE investors in their 20's.) Hopefully someone will take a chance on me or I'll use the cash I've saved up to buy something small and start from there!
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