How Do You Spot a Fake Private Money Lender? Red Flags?

[Jacqueline Wright]

Hey everyone,

I’m both a Private Money Lender (PML) and a real estate investor, and I’ve been seeing a lot of questionable "lenders" popping up online. I want to make sure new investors don’t get caught in a scam, so I’m curious—what red flags do you look for when vetting a PML?

Here are some warning signs I’ve come across, but I’d love to hear your experiences:

1️⃣ Upfront Fees – Are application, due diligence, or "insurance" fees ever legitimate?
2️⃣ No Phone Call or Verification – If they refuse to hop on a call, is that an automatic red flag?
3️⃣ Too-Good-to-Be-True Terms – 100% financing, super low rates, no credit check… is this ever real?
4️⃣ Unverifiable Business – No website, no reviews, and only a generic Gmail/Yahoo email?
5️⃣ Pressure to Move Fast – Trying to get you to wire money or sign contracts without due diligence?

As someone who lends and also borrows private money, I know how important trust and transparency are in these deals. Have you ever come across a scam? What were the warning signs?

Looking forward to your insights!

[Jay Hinrichs]

just watch American Greed episode on REMINGTON FINANCIAL  this will explain how fake lenders work.