Vetting a Private Lender

[Josh Stack]

Good Morning,

What are the ways to vet a private lender?  I put a posting in the marketplace and have had a number of private lenders contact me.  Some have more information available online than others and I'm wondering in what ways can I authenticate or vet a private lender.

One who approached me via email has scant information available online but quickly offered to fund my deal at what I thought was a very low interest rate. Something about it feels too good to be true.

Any thoughts on how to do background on a private lender?

[Mindy Jensen]

@Josh Stack , low rates are a red flag. Unless you've done a ton of deals, you'll be paying high rates AND the lender's going to want to see you bring some money into the deal, too.

Read  Tips for Avoiding a Scam on BiggerPockets.