How to avoid the wannabe lenders?

[Dhanush Kondoth]

Hello Fellow BP-ians,

As part of the flourishing REI business, I have noticed that there are tonnes of new "XYZ financial services" and XYX Capital lending" groups propping up all over the country. Every one of them I speak to seems to be in the business for over 25 yrs and are connected to 2000+ lenders and hedge funds.

Question is how to vet these companies? what kind of due diligence can I do other than asking around and checking their website and FB page. Anyone can have a really good website these days for less than 100 bucks and with some effort, anyone can also build a legit looking FB page.

is there any document that I can ask them to show proof of their credibility? is there any set of questions I can ask before signing my life off?

Please consider this as an honest attempt to not get burnt by frauds and also please consider these as a help to make sure your name is also not affected by these few bad apples. 

Hope to hear from the experts.

Dhanush