Private Lending

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21
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4
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Reginald R Cloutier Jr
  • Griswold, CT
4
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21
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Asking for a friend on lending

Reginald R Cloutier Jr
  • Griswold, CT
Posted Nov 8 2022, 06:15

Hi reaching out for a friend I have been emailing and private lending company got info for terms and conditions through email and gave me a website to apply for loan. In email it's states bank statement and pay stub and Id card and an orientation fee of $1650. I gave info of property I'm looking to go for a long with numbers for rehab and everything. I did the online application through website with basic info I have sent my id card or statements and I got an email saying they got application and to send 1650 fee to process. I just starting to feel a little off now with the process, it could be best I'm still very new to this and trying to avoid a scam. The group is American lending https://americafirstloan.com/a... any info or help be great thank you.

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72
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17
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Khemraj Sarju Jr.
  • Lender
17
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72
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Khemraj Sarju Jr.
  • Lender
Replied Nov 8 2022, 06:21

Applications should always be free. Origination fees are paid at closing. Proceed with caution on this company. We never ask the client for any money up front. 

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1,502
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1,135
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Nate Sanow
  • I​nvestor & Agent
  • Tulsa, OK
1,135
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1,502
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Nate Sanow
  • I​nvestor & Agent
  • Tulsa, OK
Replied Nov 8 2022, 06:43

Never, ever, ever pay those fees before closing. 

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69
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25
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LaMancha Sims
  • Hard Money Lender
  • Atlanta, GA
25
Votes |
69
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LaMancha Sims
  • Hard Money Lender
  • Atlanta, GA
Replied Nov 8 2022, 06:57
Quote from @Reginald R Cloutier Jr:

Hi reaching out for a friend I have been emailing and private lending company got info for terms and conditions through email and gave me a website to apply for loan. In email it's states bank statement and pay stub and Id card and an orientation fee of $1650. I gave info of property I'm looking to go for a long with numbers for rehab and everything. I did the online application through website with basic info I have sent my id card or statements and I got an email saying they got application and to send 1650 fee to process. I just starting to feel a little off now with the process, it could be best I'm still very new to this and trying to avoid a scam. The group is American lending https://americafirstloan.com/a... any info or help be great thank you.

Reginald,

The Only thing that you should pay for out of pocket prior to closing is to get the appraisal done. In some cases, with some lenders they will allow you to pay that at closing as well. So, Never...Never...pay large sums of money to anyone prior to closing! Hope this help with your next transaction. 

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Eliott Elias#2 All Forums Contributor
  • Investor
  • Austin, TX
3,017
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6,118
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Eliott Elias#2 All Forums Contributor
  • Investor
  • Austin, TX
Replied Nov 8 2022, 07:02

Seems fishy, I don't pay until the loan is approved and sent to the attorneys office for drafting 

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21
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4
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Reginald R Cloutier Jr
  • Griswold, CT
4
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21
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Reginald R Cloutier Jr
  • Griswold, CT
Replied Nov 8 2022, 09:23

Thank you everyone I did think it seemed a little off myself because when looking into things and listening to people something didn't feel right. So thanks for help and insight I appreciate the comments from everyone. Also does anyone know of lenders in the northeast I can try to reach out too. I have networked with a couple realtors and an investor but I haven't connected with any lenders. I would love to connect with some more people. Thanks again

User Stats

72
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17
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Khemraj Sarju Jr.
  • Lender
17
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72
Posts
Khemraj Sarju Jr.
  • Lender
Replied Nov 8 2022, 09:25
Quote from @Reginald R Cloutier Jr:

Thank you everyone I did think it seemed a little off myself because when looking into things and listening to people something didn't feel right. So thanks for help and insight I appreciate the comments from everyone. Also does anyone know of lenders in the northeast I can try to reach out too. I have networked with a couple realtors and an investor but I haven't connected with any lenders. I would love to connect with some more people. Thanks again


 Good afternoon, We can assist you. message me. 

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69
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25
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LaMancha Sims
  • Hard Money Lender
  • Atlanta, GA
25
Votes |
69
Posts
LaMancha Sims
  • Hard Money Lender
  • Atlanta, GA
Replied Nov 8 2022, 09:26
Quote from @Reginald R Cloutier Jr:

Thank you everyone I did think it seemed a little off myself because when looking into things and listening to people something didn't feel right. So thanks for help and insight I appreciate the comments from everyone. Also does anyone know of lenders in the northeast I can try to reach out too. I have networked with a couple realtors and an investor but I haven't connected with any lenders. I would love to connect with some more people. Thanks again


 Go to the lending area on Bigger Pocket and see if you can find a local lender from on here. That is my suggestion. 

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309
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433
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Alex Breshears
  • Lender
  • Hampton Roads, VA
433
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309
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Alex Breshears
  • Lender
  • Hampton Roads, VA
Replied Nov 15 2022, 11:03

Please do not pay any $ ahead of time for a loan unless it is directly to a vendor, such as an appraiser or possibly a small nominal fee for an application fee for a credit check. As a private lender, this is one of the largest scams out there where people pose as private lenders, when in reality they are nothing of the sort and will just take the money and run proverbially. 

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21
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4
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Reginald R Cloutier Jr
  • Griswold, CT
4
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21
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Reginald R Cloutier Jr
  • Griswold, CT
Replied Nov 15 2022, 11:30

Thank you 

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118
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46
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Dominic Pizzi
  • Lender
  • Freehold, NJ
46
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118
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Dominic Pizzi
  • Lender
  • Freehold, NJ
Replied Nov 15 2022, 11:39

Reginald, maybe we can help you! Send me a PM and maybe I can give you some more info for you/your friend on the lending front!

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758
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542
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Jonathan Taylor
  • Lender
  • Los Angeles, CA
542
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758
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Jonathan Taylor
  • Lender
  • Los Angeles, CA
Replied Nov 15 2022, 16:03

@Reginald R Cloutier Jr origination should never be collected at the start of a loan. The only part of the process where money is paid is when the client pays the Appraisal fee up front but that is done directly with the AMC. What @Khemraj Sarju Jr.stated is true for every lender/lending institution I have worked with for my whole career. This is a red flag. 

Lender CA (#02115256) and NMLS (#1993906)