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