Private funding for purchase, is this a scam? Thoughts please

[Brian R.]

I have been looking at options to purchase another property, but won't have the normal 20-25 percent for a conventional loan for a little while. I saw someone reply to a Facebook message that he is a private lender, and he will lend 100 percent of the purchase up to one million dollars, over that is 85% LTV. I sent him a message asking for some information, as it intrigued me. He sent me a response back with some information. I would like some others perspective, because if it sounds too good to be true, it probably is.

Here is the response I received with the requirements:

1.  Borrower must have an active bank account

2. Borrower must have an active identification (drivers license, passport, etc)

3. Borrower must show two months bank statement to prove income

4. A signed purchase agreement on the property

5. First payment due in two months

6. No early prepayment penalty

7. Interest rate of 5%

8. Loan term of up to 30 years

9. Loan amount of $10,000 to $10,000,000

10. Upfront loan origination fee of 1.5% must be paid when approved for funding.

Like I said before, all the terms sound OK, but the way number 10 is worded, I would have to pay them the 1.5 percent before they put the money in my account.  Will I ever see the loan is my concern and be out the 1.5 percent. Is this a scam.

I want others opinion on this. I can't find anything on-line with his name. He included his phone number in the e-mail, but that number does not come up with anything when I search it on-line. I found a business filing with his business name (an LLC) with the SOS of California that expired the middle of this year. The address associated with that listing comes up with a CPA firm in California. I am going to call it and see if they know anything.

I have never been involved with private money financing from someone I don't know, so I want to be careful if I was to go forward.

Thanks

[Jay Hinrichs]

this guy scammer has been making the rounds your about the 3rd person this week with the exact same thing..

found on facebook here read these terms.

its a fruad a scam the nigerian prince scam  send your money to the Ukraine that type of thing.

First off.

NO LENDER loans as little as 10k  but then says up to 10 million  thats the first big BS item LOL.

NO lender lends 100% to a first time borrower found on social media.

Real lenders collect their fee at close NOT up front..

And NO lender puts the loan proceeds directly into your account.. the funds are sent through an escrow either an attorney state escrow or an escrow in a state were the title and escrow company handles the funds.

these things are just out there to scam those who are not really familar with how HML or private lending works.

Glad you posted you wont lose your 1.5 %   once they get that in the door then they start hammering you for more money and more money until they bleed you dry and they never fund because they are NOT REAL .. thinks of all those scammers sitting in Bangladesh or other off shore areas.