BEWARE: Lender Scams!

[Lena Claybon]

Hi All, I don't know if this is a big problem on BP but I know of a LOT of cases where its happened in my FB groups. PLEASE beware of lenders with "gmail" addresses (mostly) saying they can get you 4-5% loans for your deals. THEY ARE SCAMS! I know someone who just lost $1600 this week to one!  PLEASE do your DUE DILIGENCE on ANY lender/investor asking you for money such as a "contract fee" or "processing fee" BEFORE you folk over your hard earned cash!  They will even say there is no "upfront fee" but if they get you approved, there is a "fill in the blank" fee.  Ask for references. I had one who sent me his website and it had a fake street address! Check everything out!  I just hate to see people continuing to lose their money like this!

[Jonathan Taylor]

Saw this come up and its terrible to hear these stories. ANY lender in the DSCR 1-4 space that asks for an upfront fee is not common. The only cost that is normally charged BEFORE closing, is the appraisal but this should be paid directly to the appraisal management company not the lender.

I have read other accounts of lenders that have advertised on BP that request a 'loan fee deposit' or what not. DO NOT GO WITH THAT LENDER.

Sorry to hear you had to go through this.