Real Estate investing with private money lenders

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Real Estate investing with private money lenders

Zach Thomas
Flipper/Rehabber · IL · Member since 2020 · 4 posts · 0 votes

Good morning, does anyone have an idea how find if private money lenders are legit?

I am talking to one right now, but my stomach is saying something is up. As well as they are asking for an upfront fee. Any feedback is appreciated.

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Derek Dombeck
Real Estate Consultant · Wittenberg, WI · Member since 2014 · 572 posts · 572 votes
5y
Ask that lender for some contact info for their other borrowers. Call them up and ask about their experience. If the lender won't supply these contacts, walk away.
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  • Derek Dombeck
    Real Estate Consultant · Wittenberg, WI · Member since 2014 · 572 posts · 572 votes
    5y
    Ask that lender for some contact info for their other borrowers. Call them up and ask about their experience. If the lender won't supply these contacts, walk away.
    1Reply
  • Doug Spence
    Investor · San Diego, CA · Member since 2016 · 1k+ posts · 975 votes
    5y

    @Zach Thomas Before I do business with anyone in real estate, and before I add anyone to my team (agents, lenders, contractors, etc) I get references and I contact the references to get an idea of what its like to work with them. The two big things I'm looking for are integrity and communication. Best of luck!

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  • Zach Thomas
    OP
    Flipper/Rehabber · IL · Member since 2020 · 4 posts · 0 votes
    5y
    Originally posted by @Derek Dombeck:
    Ask that lender for some contact info for their other borrowers. Call them up and ask about their experience. If the lender won't supply these contacts, walk away.

    Thank you Derek! Just did as you recommended.

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  • Caroline Gerardo
    Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
    5y

    Up front fee is a sign of disaster. They can ask you to pay for an appraisal, that would be normal.

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