Finding and researching private lenders

[LaTonya Norseweather]

My name is LaTonya, I am new to Real estate investing. I have not yet done a deal. I was speaking to someone about funding and I was asked if I have collateral and I told him no. He then said that I would need to pay a $125 insurance fee because of that. I want to know is that standard procedure? He says he is a private lender for Sungold Financial Lending. How do I find out if he is legit? Please help. Can not afford to be scammed.

[Jeff S.]

First, for the same reasons we recommend finding your lenders locally, we only loan in the Los Angeles/north Orange County area of southern California, @LaTonya Norseweather. It's much safer for us, and it will be safer for you to search within the Phoenix area. There's plenty of business around here for us and I'm sure there are many credible lenders for you in Phoenix. Thank you anyway for the thought.

It's unfortunate, but vetting lenders has been a popular topic lately. You might do a search. The common thread is to find your lenders locally and in person, check appropriate licensing, prepare a list of questions to ask, and obtain references from other borrowers that have used them.

Here are a few threads that will get you started:

How to Vet a Private Lender

Private Money Lender – How to Qualify the Lender?

How to Make Sure a Private Lender is Legit