Who to trust...new investor looking for lending

Who to trust...new investor looking for lending

Developer · ID · Member since 2018 · 5 posts · 0 votes

Have my first deal on the table and the lender I thought was good to go, may actually not be. Not sure to be honest who or what to believe. Who and how do you trust anyone out here? I know this topic has been beaten to death and there are "verified" lenders, but how do you believe who posts them...

Frustrated beyond belief, any guidance would be greatly appreciated. 

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  • Sandwich, MA · Member since 2018 · 103 posts · 57 votes
    8y
    @Michelle T. I am curious as to why you aren't sure about trusting this lender? What did they do to make you doubt the process?
  • Rental Property Investor · Chattanooga, TN · Member since 2015 · 208 posts · 94 votes
    8y

    Hi, @Michelle T.! I'm so sorry for the frustration you're experiencing. Are you working with private lenders, or through a bank? If you qualify for a traditional mortgage or loan, it may be worth the extra layer of fees and work to go the traditional route for your first few deals. 

    Are you a member of your local Real Estate Investors Association? That is usually a good way to meet reliable, like-minded folks who can contribute their experience to your journey, as well.

    Don't let this setback put you on the sidelines - hopefully in 5 years you'll be here in the forums sharing your story with newbies as a way to encourage them in their early challenges. 

    Keep us posted!

  • Realtor · WV · Member since 2018 · 454 posts · 310 votes
    8y

    This may not help at the moment but you can find trust worthy lenders that same way you would find anyone else that is trust worthy. Spend time meeting lenders and building relationships with them, I would start with some personal recommendations from your friends, families and colleagues. Then check with local Realtors, builders, and business people that could give recommendations. Another good area to look are your local bank branches, & credit unions. It takes time but building these relationships can carry you through your real estate investing career. 

    Good Luck! Aaron

  • Developer · ID · Member since 2018 · 5 posts · 0 votes
    8y

    In reply to you 3 (thank you btw, I'm new here, so bear with me)... let's just say it's a hunch. But I'm not sure, I have trust issues from being burnt on things before. Not sure, as of this morning, he supplied the references of other investors he has lent to, but still, that can be manipulated. Anyhow, simple answer for me on this forum is the pros answering the "who" are good lenders but if I understand this format, that's not allowed to solicit or name names.

    I have reached out to those I know around, most are very quiet about it. No one likes to spill the beans, just like when trying to find good contractors or subs...no one will share who they are using. So much shade in this biz it's unreal to me personally. We should all be helping one another so that no one gets scammed or taken advantage. I'm used to doing things solo without help, so this isn't new to me either in this regard. 

    Still, who do you trust? You can research out the ying yang but still in the end, it could burn you. I just don't know. 

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