How do I tell if a private or hard money lender is legit?

[Johnathan Tristan Mathis]

I have a property I am looking to acquire private or hard money lending for. I want to break into the investor side of real estate but I-m to scared to take the leap with random people/lender.

[Michael Kinsella]

@Johnathan Tristan Mathis,

1. Upfront fees that aren't in-line with the market or deal size.

2. Lack of referrals (as others have mentioned above).

3. Abnormally low rates for the product type, e.g. 4% interest rate on a non-bank bridge loan.

Speaking with other investors you know who have used a particular lender can be an especially informative exercise.