Private money loan. Vetting process
I’m currently looking for a private money lender to fund a new construction project here in California.
Anybody have any advice with regard to the vetting process of a lender? Currently, I have a gentleman that contacted me through a craigslist ad. Craigslist has a bad reputation for scammers so I’m trying to figure out how I can go about confirming what this guy is telling me. I’m asking for about $220,000 to be distributed on a draw schedule. He sent me some preliminary loan documents which appeared to be a complete joke to me. He seems to be obsessed with his $2700 origination fee requirement. That seems like a big red flag. I tell him that and he tells me that this is typical. He then proceeds to send me a copy of a wire transfer form where he’s transferred $850,000 to another one of his “clients“. I guess he’s thinking I should be impressed with that. Anyway, I told him I would agree to an escrow company holding our funds, my $2700 and his $60,000 first draw.
Any thoughts from anybody? My problem with more conventional Hardmoney is my experience with new construction is limited.
Thanks in advance