Can someone tell if this is private money is legit or not?

Question

Here is a private money lender who approached me at a very cheap interest rate, Can someone tell me if it is legit or not?

https://clearedfundsllc.online/#

Christopher Parsons · Answer

@Himanish Gupta first off, yeah, scam. Second, if you're ever in doubt about a loan like this, look to see if the contract includes "underwriting fees" or anything of that nature. If not, ask them before you sign anything. If they do, which they usually will because loan origination can be on a legit loan, ask them if you can wire that fee to Title to be released to them upon closing on the property.

What I have found is in the case of a scammer, they'll usually tell you they have some in house process, blah blah blah. In that case, run away. If they say that's acceptable, then dig a bit deeper.

Kyle J. · Answer

I’ve never heard of that company before, but I can tell you after looking at their website that they are not legit.

There are a bunch of red flags. That website, and all the linked documents, are written like so many others whose operators are from outside the US (and have poor English language skills) and typically perpetuate loan scams on unsuspecting borrowers.

Their “Terms & Conditions” document for the loan is a joke.

And I can guarantee you that no real “private lender” is loaning money at what they’re advertising (i.e. $50k up to $800M @ 5% interest for 35 years). Just not going to happen.

There’s other red flags too, but hopefully you get the point. If you read through all their fine print, you can even figure out what their end game is.

After you apply (and provide all your personal info and SSN by the way), they’re going to charge you a 1% fee for “loan processing before the loan can be set aside for disbursement to borrower” (yes I know that’s a little hard to understand but that’s how they typed it).

Bottom line, they’re going to try to get money from you up front, but you’ll never get a loan from them.

Tips for Avoiding a Scam on BiggerPockets

Jay Hinrichs · Answer

Next thing  I could see these scammers doing is  saying SURE wire it to the title company here is the wire instructions..  they look legit but its not the correct account and the money has been stolen.

also lenders DO NOT contact YOU.. this just is not done..  Lenders will advertise for sure.. but you contact them.. they never e mail your or PM you on BP anything like that..

Jay Hinrichs · Answer

I dont really know but i am sure opening it would subject ones computer to an attack.. and that one when you really read through it was such BS.. talks about the schools district in FLA..  talks about a contractor  etc etc..

yes i get encrypted e mails from title companies.. our business 90% of the time is repeat with our title companies that i have personally visited on my trips to the markets.

Jay Hinrichs · Answer

Yup a joke is right.. the English is obviously written by someone not from the US and not in the lending business.

Another fact is ANY mortgage company offering loans that is based in Nevada needs to be state and NMLS licensed with their license prominently displayed on their website.

To the OP  I high suggest you get on Net flix and watch the American Greed Episode on Remington Financial and or Google Ingrid Robinson  Remington financial and read in depth how these pump and dump fake lenders set them selves up to just collect up front fees and never make loans..  You have ran into one and there are probably a thousand of these guys/gals out there doing this.

Jay Hinrichs · Answer

See below the latest phishing scams i have been getting ..  folks that maybe do a few transactions in a life time get this e mail and open it boom they are hacked..  it purports to be from First American title.. but it talks about Florida  the phone number is San Francisco etc etc its just a jumbled mess.. but i suspect folks open these.. we do all our transactions Mail away so we get closing docs like this multiple times a week or sometimes multiples in a day if we are really busy funding or selling..   these started about 6 weeks ago I made a post on BP about it.  I suspect they target high volume operators..  But just another bunch of crooks looking to steal from those of us in the industry.  I sent this to my FATCO rep here in Oregon and they forwarded it on to their Fraud department she said she had not seen one quite like this yet.

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Escrow Assistant
T: 415.239.0493 | F: 415.849.9409 | Shoretel: 94095  
First American Title | First American Insurance
2566 Ocean Avenue
firstam.com

Escrow Assistant

T: 415.239.0493 | F: 415.849.9409 | Shoretel: 94095

First American Title | First American Insurance

2566 Ocean Avenue

firstam.com

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Kyle J. · Answer

@Jay Hinrichs Do you think the crook’s goal with that one was to get you to open the link in the “secure message” (which I would guess would probably install some sort of virus or malware on your computer)?

If so, I haven’t seen that exact one before.

When I email title companies, the emails are generally just regular/unsecured emails. However, if I’m funding a loan in a private lending deal and it comes time to send me wiring instructions, those emails have always come via “secured message” (as I’m sure you know).

Of course, they would never be sent with all that other junk added. But I think some of these scammer just add a bunch of disclaimers and “legal” language to give it the air of authenticity (and probably to confuse people).

Christopher Parsons · Answer

@Jay Hinrichs very true. With the digging deeper part, you would have to verify that the Title company is legit. But yeah, private money is something you look for, it doesn't look for you unless you're a big name.

Tom S. · Answer

@Timur Galimzyanov  They definitely could have been hacked.  Always call your escrow company directly to confirm any kind of money / wire instructions.

Timur Galimzyanov · Answer

It's weird. I am under a contract for a property that I'm selling and just received the same email with escrow instructions. Coincidence? Or the title company/or the realtor I am working with got hacked and these scammers know who to target.

Can someone tell if this is private money is legit or not?

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