How do I vet a non local private lender?
Hello, I am still learning how to do my due diligence. I need some sound advice on how I go about vetting a private investor that has contacted me from BP.
As a piece of reference, his name is Steven Wilson. I would like to accept his offer, but want to be sure I’m not being led into a scam of sorts.
Please help me out fellow BP’ers😉😁
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#5 Private Lending & Conventional Mortgage Advice Contributor
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- Los Angeles, CA
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#5 Private Lending & Conventional Mortgage Advice Contributor
- Lender
- Los Angeles, CA
Nevada is easily the most restrictive state in the nation, to loan money, @Isaac Chun. For the purposes of making a real estate loan, NV does not distinguish between business and consumer purpose loans. Your lender must be both a licensed Nevada broker and possess an NMLS registration to originate any real estate loan in this state. It's a rare out-of-state private lender has both of these.
The real answer to your question asking, "How do I vet a non local private lender?" is you don't. You find your money locally, especially in Nevada. Lending is a business based on relationships, Isaac; as is most business. These are formed face-to-face. Here's a list of Meetups in the Las Vegas area you should consider attending, armed with a list of informed questions to ask the lenders in attendance. There will be many.
Vetting private lenders has been addressed many times on this board so you should do a search. Here are some relevant threads that will provide some questions you can ask: