Hard money lender scam?

[Renee Edmondson]

Hey all! So I’m trying to close on my first fix and flip property. After weeks of getting the run around from a previous lender, my title company and myself decided I needed to seek lending elsewhere. I had posted on an investor group on Facebook about what I needed and after a number of responses, ended up talking to a woman that referred me to her lender. Gave me his phone number and I reached out, he told me to send details of the house to his email and we went from there. The lender worked quickly, approved my loan, and had me fill out several different contracts for the loan. The contracts (and the lender tbf) stated there would be an upfront fee for $4800 for loan origination/ documentation fees.I had reached out to my title company because this lender just made everything a little too easy and it made me concerned. The title company said from their end, he seems legitimate. He has sent over all of the required documentation and has been continuously in contact with them. I’m just worried he’s going to get this money from me and disappear. What would you guys do? Again, this is my first investment property. I’m trying to be diligent but don’t know if I’m being paranoid. Thanks 😁

[Chris Seveney]

@Renee Edmondson

Never ever ever give money to a lender before closing. It’s that simple. That’s how to not get scammed

All funds go through the title company and they are not authorized to release funds until the closing statement is accepted by both parties and transaction consummated - including title company receiving the funds from the lender