How to know if A private lender is who they say they are?

Question

Hey,

I recently posted here on BP about needing help finding lending on this MHP I am purchasing. I was contacted by A guy who claims to have a lender who wants to lend me the money so he sent over the lending documents in an email. Being cautious I simply ask "with all respect how can you prove to me this isn't a scam since it would be an easy way to get all my information" the response I got was "I assure you it is not a scam my lender is willing to give you the money..etc" the person name is Samuel Thomas can anyone vouch for him?

Jeff S. · Answer

You have no idea who you are dealing with, @Allen Martin.  Even if Samuel Thomas were a nationally known respected lender, blessed by the Pope, you don’t know it is he who contacted you.

I had a scammer create a very professional-looking website with the name of our company.  The site contained what was probably a Google voice phone number, my name, and our real home address.  This scoundrel answered the phone using my name and scammed a lot of people out of a lot of money.

Stay off the web when looking for money, Allen. Lending is a business based on relationships, not online anonymity.  There are just too many scammers out there and it’s impossible to tell who is who or even whose website is legit.  Facebook, LinkedIn, Craigslist, Connected Investors, and most other online sources like these are cesspools.  Even the lender list on BP is not vetted.

Local real estate clubs are your best bet; face-to-face. Until we can freely socialize again, which is hopefully soon, your best option is to go to Meetup.com and call some local real estate club operators.  Ask which lenders regularly attend(ed) their club and who have the best reputations.  Call these people and have a conversation with a list of informed questions, such as these.    Better yet, go to lunch with the same list of questions, and develop a relationship.

Never rely on anonymous strangers you met on the web to find your money.