How do you vet private lenders?

Question

Hi BP.

How do you vet a new private lender?

I just had a “lender” email me. I’ll include that email in a moment.  My first inclination was that it was complete spam and to delete it.  But I know private lenders exist, and I’d love to get connect with one (I can see my inbox getting spammed already)

Here was the email:

“Hello, hope you received it well

We are private lending company we can get anyone funded.Funding Ranges from $50K - $5M with proof of clearing  10k annually to use for your own investment at 4% interest rate with no prepayment penalty

Duration ranges from 1 - 30Yrs loan terms,No minimum credit check and fast loan as 4 days. We will like to know if you currently have a deal that requires funding at the moment

Email me back let's proceed further

Regards

”

Normally I’d look up their website and license. But since they are a private lender they have no license, and this guy doesn’t have a website.

So, how would you go about verifying this lender, or any other private lender, is legit?

Robert Freeborn · Answer

@Robert Freeborn *vetting them.  (Really wish you could see the post you are replying to when you respond on the mobile app

Robert Freeborn · Answer

@Michal Liviatan Carpenter generally, I agree.  But I know that not all private lenders will have a website.  Trying to figure out how to go about getting them.

Robert Freeborn · Answer

@Curt Davis referrals as always are king.

Michal Liviatan Carpenter · Answer

Its sounds like someone to stay away from. Google the name, if you couldn't find nothing, it is probably.. Nothing! Tip: Start here at BP to search for legit lenders. Look for an official website where they show info on all founders and members.

Curt Davis · Answer

Usually, if they have to spam blast ppl like this, I would stay away.

Get referrals from closing attorneys or other investors, that is where I would start.

Good luck