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Updated about 10 years ago, 11/15/2014
Hard Money Lender asking for Wire Transfer
I'm looking to flip a property in my area. I have engaged with a private money lender to try to get the deal financed. I received a "conditional commitment" letter from the lender. To begin processing the loan, he's asking for $4000 wire transfer (PNC Bank). My question is, is this normal? Should I be concerned that he's looking for a wire transfer prior to closing? The letter states the money will be used to fund inspections, title work, appraisal, inspection, internal financial review & legal, loan processing, and environmental survey. According to the letter, this money will be credited back to me at closing.
Anyone have any experience they can share? I've spoken to the lender many times, and he's been very willing to answer any of my questions and work with me. However, he insists that I wire the money, he will not take any other form of payment.