Due diligence, hard money, new (to me) rehabber

[Jeff S.]

Received a yellow letter on a rental. He said interested in property and even if not wanting to sell, would love to chat. Called him and talked for at least an hour. He is a local rehab and flip guy and has lots of deals going with 3 crews spread across the state and some in Washington.

He does joint ventures and uses hard money. He offered me 2 joint venture deals and one hard money loan at 12%. Checked the deals out and like the loan option.

My question to you is: what is the best way to quickly do due diligence on this guy?

[Ann Bellamy]

Ask him for the names of the hard money lenders he has worked with and call them. They may or may not tell you the truth, but doesn't hurt to try. of course once you alert them that he has a deal pending they'll be all over him

Ask around at the local REIA's. In fact, call the heads of the REIA's and ask them. The heads of REIA's often get lots of info on the QT through the grapevine.

check BOP.gov (Bureau of Prisons) - mortgage fraud guys end up doing federal time