I posted an ad on craigslist looking for investors, I got a response from an investor saying he has private funds only wants 1% upfront and will charge 5% a month. I am not sure if he is a scam artist or not, I can I check this guy out???
Hi,
Run Marcus Run!!! Are you kidding me? Your a smart guy Marcus you tell me if you want $50k or $100k and the guy requires 1% up front then what do you think?
Are you looking for investors or funds?
Why bother checking, I know the truth!!!
GR
That is what I thought
Thanks, GR
Private investors can be a scary thing. You never know their background unless you check it out yourself. There are good cons out there and you have to protect yourself. If you want to use one, ask him what local real estate organizations he belongs to. Check his references. I would only use a private lender or hard money lender from somebody that I know and trust.
You may carry out all the research and still end up with a con.These guys are good at the game.
You would rather work with someone you know at a personal level.
I wouldn’t jump to the conclusion that this guy is not a real lender. Speak to him and set up a face to face meeting. I don’t think the 1% is a big deal but the 5% a month (60% annual) may be violating possible usury laws.
Also, when I borrow from private lenders I always close with my attorneys. This is not going to be some type of kitchen table transaction. I have borrowed hard money and paid as high a 3% upfront with a 12% annual interest rate. What you need to make sure of is that there is enough money in the deal to justify borrowing hard money.
Thanks, For the info guy and yes there are a lot of scams out there
Yeah, scammers exist from the largest transactions down to the littlest deals. Be careful and if there are several stuffs that are vague, you can always ask a lawyer, financial analyst or our experienced investors in here for some enlightenment. Research for legitimacy is all worth it. Good luck and take care!
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