So, I came across a member of the BP community that answered to a proposition of a deal that I posted on the MP but resulted to be a total SCAM. I found that out by searching for posts about his lending company throughout the forums and learned how he tried to scam other other BP's members.
Anyways, as a newbie that I am, I had a hunch during the conversations I had with this pseudo-investor that pointed me to verify his identity. But I know that there are more things than a hunch to determine if an investor is a real investor or just a fraud.
Could you guys please help us (the newbies) know what things we should ask to an investor to verify his/her identity or what proofs should we get from them to know if they are for real?
Asking for referrals and that kind of stuff could be (sometimes) a difficult conversation between a newbie and the prospect investor. But how can I make sure that the person that is looking at my deal is legit?
Ask yourself if the loan for that product type is normal for market conditions. If it is not then the likelihood is higher the lender is not legit. The odds of you finding the scarce lender that has some amazing program others do not in the market is very small.
It happens occasionally but only a small fraction of the time.
Thanks for that one @Joel Owens ! I am still trying to figure out how much info on the project should I give to the investor before starting to ask for referrals. Or at what point. In your opinion, which are the "steps to follow" when approaching an unknown investor to offer a deal?
Is there a way that you prefer (in which to approach to investors that you don't know to offer deals)?
I don't know if I am asking this correctly, though.
@Jose Lira , current market interest rates are 4.5-5% give or take. Someone offering anywhere near this should be a bank or mortgage broker. Hard money doesn't lend at current rates.
Another thing to be careful about is the range of loans they're willing to lend on. When they post that they can do $10,000 to $10 million, they're full of it. If they have the money to lend $10 million, they aren't going to bother with $10k loans.
@Jose Lira they all end up looking very similar...
$20k - $20mil
@gmail email address
They do personal loans, mortgages, and business loans.
When it comes to lending, if it looks too good to be true, it is.
are you talking about someone to finance your deals.. not someone our trying to sell a deal to correct.
if its a private lender only do business with local person you meet.. BP Facebook linkdin connected investor are all flooded with fake lenders just looking to nip you for some up front money.
your In seattle here are real lenders.
1 east side funding
3. iron birdge
4. Seattle funding
and thats just off the top of my head.. get those folks rates and then U know what market is and if someone approachs you offering you a lot less or wants up front money of any kind then they are frauds.
also bad English and too pushy etc.. and offering fake linkdin credentials or offer to send picture with drivers license those are all fake no real lender does that.
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