How to tell you're about to be scammed!

[Matthew Crivelli]

Hello Bigger Pockets, I just wanted to shell out some advice for new investors dealing with the private lending community. 95% of us are good people who want to get you funded and see you succeed. Although a small sec of mainly foreigners are out their trying to rob investors of capital. You have to keep in mind the old saying, if it sounds to good to be true... it probably is!

These scammers are targeting the dreamers in the group. 100% funding does exist, but not for people who are new to the game or people who don't have the money in the first place.  It is unobtainable for most and it certainly isn't at 4%-8% interest. 

UPFRONT FEES, this is usually a dead give away. Yes, their are a few who are legitimate who charge an upfront fee but this is something you really should just avoid all together. 99% of other lenders wont charge anything up front other than a 3rd party appraisal. WE GET PAID WHEN YOU GET FUNDED!

If the person you are talking to sounds like they are from outside the U.S. and gets mad when you question them, it might be a scam. Anyone using a WHATSUP APP to talk to you is not a good sign or if you call their number and instead of a ringing you hear BEEP, BEEP, that will tell you they are outside the U.S.

Even some legitimate lenders have scams, anyone telling you that the only title companies you can use is from a pre approved list they have. Again be careful, I've heard this one a few times. It should be your choice who you use!

Ask what state the company is registered in and go to the states website and see if they are being honest. Oh they don't have a website? REDFLAG, They can't give you a few names of title companies they have worked with before? REDFLAG! 

You have to realize especially being new, you need 20% for a down payment and decent credit or have a partner who does. If you cant meet these requirements don't go put a house under contract! What happens is you think "oh I found a deal!" then go running around like a chicken with your head cut off trying to find financing for the property. Then you here a series of no's until you come across the one guy who says everything you want to hear! That's the guy who's going to take you for a ride! Don't be this person! 

I hope all this common sense helps someone! Their is an old saying my father used to tell me as a child, " A fool and his money will soon be parted" Don't let someone make a fool out of you!

End rant, have a good day!