Private Lending - if it's too easy is it a scam?

[Alyssandria L.]

I'm a beginner investor and have a 3 unit property that we rehabbed and are occupying and were able to get a mortgage the conventional way. I'm looking to get my second rental property and execute the BRRR method!

As I'm looking into private lending for $175K to obtain the property + rehab cost. Then refinancing it in a year or so.  I reached out to a private lender who gave me these terms:

"Loan Amount: $175,000.00

Loan Duration:2 years

Interest Rate: 5%

Total Interest: $17,500.00

Monthly payment: $730.00

Cumulative payment:$192,500.00

Number of payment:24

Note: Only the interest will be paid 24 times of $730.00 monthly and the principal of $175,000.00 (loan amount) will be paid at the end of the loan duration (2 years). Let me know if you are in agreement with the above loan repayment statement so that we can proceed."

What I'm concern with is that he didn't ask anything about the property - nothing - except how much I need to borrow.  Is this normal?

[George Taylor]

Not normal. A legit lender will never not ask about the property in question.