Advice on Private Lending Company

[Robin Adams]

Hi Everyone, I'm in the process of negotiating a deal for a single family with 5 bed. My plan is to use for a student rental by charge by the bedroom. I'm looking into private lending. I recently contacted a company Express Fidelity Funds. I found them on Linkdein. Wondering if anyone has had any dealings with this company before I move forward. The rate is 7% down and 6% interest only for 1 year plus a 1% up front charge. Appreciate any insight.

[Mitch Messer]

Hi @Robin Adams Just to be clear: This company is likely an asset-based lender or hard money lender. But they are not a private lender.

Private lenders are individuals with funds who are already inside your network and who are interested in having you put their money to work. Their rates and terms are whatever the two of you negotiate.

I've no personal experience with Express Fidelity Funds, but unless they are related to Fidelity Investments I'd say they've gone out of their way just to sound legitimate and huge. Not usually a great sign.

Do thorough due-diligence, double-check references and be very careful!

[Robin Adams]

Thank you for the advice

[Gabriel Hershberger]

The BBB gives them an F scorecard. BBB has determined that this company is not located at the address listed in its Business Profile. The business is reporting an office address of 5700 Westpark Dr, Chralotte NC 28217. However, this address belongs to a hotel.

If you have a complaint, please go to the Internet Crime Complaint Center at www.ic3.gov.

[Rick Pozos]

Find someone at your local real estate investor association or club. Why are people so trusting when it comes to the internet?? There are so many scammers out there. I have heard so many people lose money by finding a lender, appraiser, or whatever because they trust anyone on the internet.

Dont do it.