Hello all.
Im new to the post. (long time reader though) and fairly new to real estate investing.
I have been investing for 6 months. purchased my first property that I am now renting out until the market here in PA goes up a bit. (right now the market is declining and it’s killin profits)
Anywho…I did my first deal witha hard money lender and they were fine…they got the job done but this time around I wanted to try a private investor.
I got a reply back from a private investor in UK (london, england) stating that they will fund me the money if I pay for loan insurance to protect them and I fax them a copy of my drivers lic. for id purposes. They did not ask for my ss# just name address and copy of id.
My question to all of you savvy and long time investors is, have you ever used one of these private investors that asked you to do this and how did it pan out? should I be leary? They say they will fund/wire the money within 24 hours of getting the payment for the loan insurance . (also, since they are wiring the money, they will need my account info eventually) WHAT SHOULD I DO? :
Tell them that you want to pay for the loan insurance yourself and that you will fax confirmation of the insurance to them. If they shy away from this option you should do some more research on this ‘investor’.
BTW,
You and I are in a very similar situation. I’ve just acquired several properties which are breaking even. I enquired about a couple of loans from the UK and found one of them to be very expensive (about 29% interest after fees) and the other a little shady. Shady insisted on my sending a transfer fee which I’ve done in the past for a fraction of the money they wanted. I dont want to disclose the PI details here because I didnt actually go through with either of them. (If anyone is interested they can email me directly). I wanted to be better informed as to how the process worked, preferably from someone who has done it with reputable entities.
The UK dont use SS numbers so this is probably why they didnt ask you for it, they use National Insurance numbers which is similar.
I googled loan insurance and a good place to start enquiries would be with insurance companies like minnesotamutual.
Which HML did you use?
I would also like to know the PI you were dealing with. Can you email me?
Thanks
