How to evaluate a private lender

[Amir Mohammed]

Hello BP Community,

I reached out to a private money lender. His company has been active for the past six years. There is no company website or phone number, I  looked up the address on google and it matches at six different locations. i found him on Linkedin and I sent him a summary of the deal with cash flow and expenses. He got back to me after 3 business days and asked me to fill out a KYC disclaimer form. "Form AP-30 application disclosure". He sent me the application and asked me to send my bank details, business information, and ID.

What questions should I ask him to verify if he is a legit private lender?. I have had a bad experience in the past, where guys asked me to pay for 5 k insurance cost to be funded.

[Jay Hinrichs]

Quote from @Amir Mohammed:

@

Chris Seveney

How does private lending working outside family, friends.

i reach out to people who as a profession are private lender. For example lets say i need 20 -25% Down payment from the private money lender. do they take a 2nd position? on the deal and how do they fund me the money?. will they transfer directly to escrow?

no private lender that you personally do not know is going to do a loan like that its too risky for them and to much debt for you.. if you dont have a down payment.. you need to wait until you can get one or get a JV partner from the start who is going to provide capital for the venture.

PS the guy your talking to I would say 99% is a fake lender and will attempt to get upfront money out of you then go dark.