Why all these private lenders communicate from unofficial emails?

Question

I am a newbie to RE. I am getting a lot of private lenders' emails every day. Most of them send emails from official email addresses and no contact information is mentioned. Are they legit to talk to them? or scammers? Gurus, what do you guys think?

What kind of questions can ask to find legit or not?

Jesse Rivera · Answer

Because in most states, you don't need a license to do commercial loans (in CA you do). So most of the solicitations are just sales people, that don't know a lot about loan, or even investing. Their job is to get you in the door, and then they will get paid if the loan closes. More of a buck shot approach.

Find a reputable, experienced (loans and investing) loan officer that does hard money. I would start with a mortgage broker.

Nick Belsky · Answer

@Srikanth Vadlakonda

@Jesse Rivera is right on the money!  You can originate commercial loans in 42 states with no NMLS license.  Anyone can do it.  So stating that folks need to show their license number or have a "corporate email" domain is simply not a good indicator at all.  I know several commercial brokers who use gmail or outlook for their commercial origination and are totally legit.

Asking for money up front to "show your serious" is a HUGE flag!  I have a lender or two that will ask for appraisal funds up front, but this  is done through a secured portal and it is disclosed that the funds are refundable should your deal fall through before an appraisal inspection is performed.  Use common sense.  If someone is asking for something for nothing, then questions.  As the famous saying goes, "if something stinks, it probably smells".

Cheers!

Dave Schmidt · Answer

@Srikanth Vadlakonda Any legitimate lender should be willing to give you their contact information and be even more willing to speak over the phone or in person.The oldest scam in the book is fake lenders charging ridiculous up front fees and then blowing off the customer. Remember that you are a new to real estate so you may be more of a riskier borrower in the eyes of legitimate lender, anybody that is guaranteeing 100% financing with the cheapest rates you have ever seen and minimal points up front, is likely full of BS. Try connecting with a local agent or investor club to see if you can find someone local to your area, or ask around on here.

Brad Jacobson · Answer

I agree with Matthew - real lenders should have a company driven email or at least the proper signature with the company logo and license number.  Steer away from odd Gmail addresses (especially when it comes to given them your SS and other personal details) unless you've done the work to verify them.

Matthew Crivelli · Answer

I can't say this goes for everyone one of them but most "lenders" using a Gmail account are going to scam you. The game is to get you to pay for some type of fictional service to initiate the loan process. Upfront fee's are almost always a scam.

Jared Rine · Answer

@Srikanth Vadlakonda..I probably don't need to add my $0.02 as it seems your post has some great replies.  I'd be careful about the people soliciting.  Full disclosure - I'm a mortgage broker in CA, licensed, and I operate out of a Gmail account, so I don't necessarily agree that that's all scam.  None of my clients have a problem with it.  However, I'm usually not going to reach out to you, and in most communication esp email, you're going to see all my licensing, company name, etc.  Def look out for anyone asking for upfront money, and if the terms sound too good to be true, they likely are.

Why all these private lenders communicate from unofficial emails?

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