Private Money Lenders - Email Solicitations...Legit or No?

[Karla K.]

Below is a cut and paste of an email sent to me (I get these frequently – their name is excluded here)…Anyone else get these and if so, what is your experience? Are they typically legit or not legit? If they are legit, what's the 'catch"? Thanks!

“my name is XYZ, I’m a direct private money lender. I can finance up to 100% of your purchase price and Rehab cost. I also specialized in providing all types of loans/investment funding including personal loans, commercial loans, Business and unsecured loans fix & flips,buy and hold’s at 5% interest rate with no prmy epayment penalty and your credit score does not matter. Feel free to contact me today for more information.”

[Timothy Hero]

This is a scam. Loans are based on credit score, LTV, and loan size. Anyone saying a flat rate regardless of the numbers is fraudulent.

Also, lending 100% of everything is the riskiest thing a lender can do, and to offer it at half the rate of the rest of the industry is laughable.