Avoid Scams? Private Money?

[Steven DAmbra]

Hey BP

Im always giving my email in Facebook groups and I come across plenty of "lenders" but sometimes something just feels off, like it could be a scam.

I emailed a Private money guy recently is offering 4% interest which sounds great but needs a $1500 origination fee.

Someone had told me there's a list or software out there to tell or identify whether the lender is legit or not.. so my loaded question is ...

1.) How can I tell if the Private money or even Hard money lender is legitimate?

2.) Is there always an Origination fee?

3.) Can someone please refer me to a PML???

_My experience level is 2 done flips.

_Used high interest hard money.

_woukd love to work with a Private Money Lender in Massachusetts or Rhode Island.

Please and thank you BP community.

[Fred Shatzoff]

Nobody is giving 4% on hard money. More like 10% to 13% always points 3 to 4. Only fee prior to closing is appraisal paid to appraiser.  Other fees at closing.  If it sounds to good to be true it usually is.