Hard Money Lender asking for Wire Transfer

[Brian Grignon]

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.

[Jon Holdman]

Lenders asking for up front payments -> suspect

Lenders asking for LARGE up front payments -> very suspect

Many of the fees mentioned are typically paid at closing, no ahead of time

Demanding wire transfers -> suspect

Now, let me ask, is this a commercial deal? Or SFRs? Up front fees are more common on large commercial loans. But not at all for SFR hard money deals.