Tips for Avoiding a Lending Scam

[Mindy Jensen]

BiggerPockets is a great place to come learn about real estate and network with other investors. Our members run the entire spectrum, from newbie to expert, wholesalers, flippers, landlords, and professionals like attorneys, title company representatives, contractors and lenders.

With more than 550,000 members, we do not have the resources available to perform background checks on any of our members, and that includes the lenders.

We've created a page to help you avoid loan scams by giving you some "red flags" that are common among scams.

We also have a very active forum right here. ASK about a lender if you are unsure. Our members are all too happy to share their experiences with you. 

If the deal seems too good to be true, it is. Upfront fees are one of the biggest red flags out there. YES, it costs money to get a loan. There ARE fees involved. But they are paid AT CLOSING. In front of a title representative or attorney, not wired to some bank at the beginning of the process.

Do your due diligence on your lender, just as you would on a property.