Lender Advice

[Maisa Vahedi]

Hi BP folks!

I want advice on a lender that I might be working with. 

She's not asking for any upfront fees, but she does ask for a due diligence fee of upto $75,000 that is held in a escrow account in NY. She is asking for POF of the $75,000 before she will introduce me to any reference. The LTV is 97% with the due diligence fees rolled back into the loan at the time of closing. 

I know there's isn't much information here but can you please point me in the right direction. Is this lender legit? I've googled her name and company name and it doesn't come up with reviews good or bad. 

Thank you,

Maisa 

[Darryl Dahlen]

What "lender" is this? Never in my years of originating commercial loans have I had a real lender ask for anything near that amount for DD and that includes CMBS and HUD lenders which can be on the expensive side when it comes to engagement deposits.

Deposit aside, the fact this person wants a deposit BEFORE she'll introduce you to a reference is a HUGE red flag. Secondly, the fact that anyone is promoting that high of an LTV is another huge red flag since that's simply unheard of. Personally, I think she's using that to bait you into sending the funds.