Charged $4.95 for Hard money proof of funds letter.

[Robert Beickert]

I have a lender who is requiring me to give them my cc or debit card Info to charge $4.95 for a proof of funds letter. Is this a red flag or the norm for hard money? I've never gotten a hard money or private loan before so I'm clueless. Thanks

[Andrew Postell]

@Robert Beickert I have seen ALL SORTS of things get charged to people before...application fees, credit reports, etc.  If anyone "drains" your credit card, you are protected since it was not an authorized charge.  I don't think there's any concern there really.  But my questions might be, how did you hear about this Hard Money Lender?  Most investors work on referrals.  Meaning, I want to work with lenders, contractors, property management companies, etc. that another investor REFERRED to me.  That way, I can get their feedback and assurance on the vendor.  Maybe the one you are using is very good, but they are trying to limit their costs for things.  Dunno, but if they were referred, you could go back to your original person who referred them to you and see what their experience was like.  Just something to think about.

Now, if you do need some referrals, for whatever reason, try posting in that state forum. Bigger Pockets has some great state forums and usually there are good locals that monitor those. Also, try some local real estate meetup groups. Meetup.com is a good resource for those but some post here on Bigger Pockets too.