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Updated over 2 years ago on . Most recent reply
Origination fee... real or fake?
Is it common, when dealing with private money lenders, to have an "Origination fee"? How do you know that it isn't a scam? Does anyone recommend a private money lender for a rookie to real estate investing? I currently have 2 deals on the table, with no funding.
Most Popular Reply
Quote from @David Simpson:
Is it common, when dealing with private money lenders, to have an "Origination fee"? How do you know that it isn't a scam? Does anyone recommend a private money lender for a rookie to real estate investing? I currently have 2 deals on the table, with no funding.
You pay any origination fee, generally 1% to 2% depending on the interest rate, at closing in front of an escrow agent. Any fees before that are scams.
If they say it's a "processing fee", same thing.