Does this look legit?

Question

Hi, We've been looking for some hard money lenders and we have been approved by Britz AG Finance Co, Inc. I'm trying to find out if this is legit, the terms seem too good to be true. Has anyone ever used them before? I have included links with their approval letter and loan agreement. Thanks in advance, Diane

BRITZ AG FINANCE CO, INC LOAN APPROVAL LETTER DIANE HAGLER.pdf

BRITZ AG FINANCE CO, INC LOAN AGREEMENT DIANE HAGLER.pdf

BRITZ AG FINANCE CO, INC LOAN APPROVAL LETTER DIANE HAGLER.pdf

BRITZ AG FINANCE CO, INC LOAN AGREEMENT DIANE HAGLER.pdf

Diane Hagler · Answer

Thank you all for the advice. I have not given them my account number or my SS#.  I am going to pass on this offer, as I believe it to be a scam, I just really wanted to see what others had to say. I also believe that whom ever I am in contact with is not Britz AG Finance, if there even is one. I did look them up before I posted, thus the reason I posted, to see if anyone had dealt with them before.

Jeff S. · Answer

Before you read one word further, @Diane Hagler, call your bank and change your account number.  You are being scammed and some of the signs are obvious.

With the prime rate at 6.25% do you really think this company is going to loan you money at 5%?  How much do you think this money will cost them?  I can assure you it’s more than 6.25%.  And for 30 years? Yeah, sure.

A few comments that might not be obvious.  You didn’t say but I assume your loan is for a business purpose such as for a flip or other investment property in North Carolina.  Yes?  NC does not require a license to make business-purpose real estate loans.  Whether the company is licensed in CA or elsewhere, they can lend in NC.

As an aside, and only to confuse things, to call yourself a lender in CA you must be licensed.  If you are only making business-purpose loans in CA, you do not need an MLO and NMLS registration.  You must either be a licensed real estate broker thru the DRE or California Finance Lender (CFL) thru the DFPI (we are licensed CFLs).   Britz AG Finance Co. does not list a license on their website that I could find but they are in fact licensed CFLs in good standing since 1997.  You can look them up here.  Their corporation is also in good standing per the CA Secretary of State.

Why would a licensed lender for 25 years not include license information on their website, as required by law?  Do they not know? Hmmm ...

My guess is that you are not communicating with Britz AG Finance Co.  There are many fake websites impersonating legitimate companies and some have been discussed here.  We’ve been victims of corporate identity theft ourselves and it’s very hard to stop even when you see it happening before your very eyes.  I don’t know how you found this site but if you really want to speak to someone at this company you might contact them through means other than the contact info on the website.  LinkedIn, Agent for Service at the CA Secretary of State, or even skip tracing if you really have a burning desire are just a few of many options.

Looking up public documents such as deed-of-trusts, mortgages, lawsuits, and licenses only confirms that the company exists, not that you are speaking to a legit representative.

I know everyone likes the convenience of the web, and they are tired of hearing it, but this really is a business based on relationships, not online anonymity. My best advice is to meet your lenders face-to-face at real estate clubs, conferences, or other professional events. If they’ve been around for a while, the club organizers or others in the room will know them.   North Carolina is a big place.  I’m certain there are honest lenders there that could help you.

Meanwhile, Diane, call your bank.

Jay Hinrichs · Answer

If its a CA lender there are 3 things they need to be legal to loan you money.

they need one of these three things.

1. MLO state licened with NMLS registration super easy to check on line.

2. Consumer finance license same thing check on line.

3. REal Estate brokers license again check on line.

If they have none of these things they are not legal to lend and if they have been doing it since 97 then they are most likely a fake.. and there is no reason to ask for your bank account #  RED FLAG  LLC and by laws mean ABSOLUTLY NOTHING in the lending world.

Ned Carey · Answer

@Diane Hagler It looks like the links don't work.

Mohammed Rahman · Answer

Hey @Diane Hagler - hard to read the information even via screenshots, you could simply just do a corporate search of their entity and ensure there aren't any lawsuits against them.

Diane Hagler · Answer

Thanks Chris, I'll save your info for future reference.

Dave Skow · Answer

someone  asked the  same  question on BP a  yr ago  https://www.biggerpockets.com/...

Chris Tarpey · Answer

Let me know if you need a hard money connection! We invest in NC as well and have a great relationship with ours.

Ned Carey · Answer

Not that @Jay Hinrichs needs me to back him up but I will add that I thought it odd that they would send information about their company like by laws. That just seems amateurish and unnecessary.

I don't know where you learned they have been doing this since 1997 but that also seems odd. As regulations change lenders get merged acquired and reconfigured.

Regarding the bank account number it is reasonable for them to want that for auto debits of payments. However that probably wouldn't be provided until settlement of the loan.

Ned Carey · Answer

@Diane Hagler I am not an attorney, but I  might consult with one to see if signing this obligates you to anything. Have you contacted a title company to handle the settlement yet. They may be able to give you some guidance.

I presume this will be handled with a title company. If no that is the biggest red flag. No legit lender will settle without title insurance issued by a title company (Escrow company in some states) In fact that might be a way to check them out. Get references and contact the title companies and see if they have handled transaction for this company.

Does this look legit?

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