Private money lender registration fee

[Lian Shi]

hi all, 

We have a property under contract and we are seeking private money lender to fund the gap. A private money lender approached us on Facebook and is willing to fund the full Gap. However, they would charge a one time registration fee upfront and can't roll into the loan. Has anyone worked with a private money lender who charges a fee? Is this a scam or normal? How can we know if this is legit?  Please help us ASAP.  Thank you.

[John Thedford]

I do private lending but don't charge anything up front. My borrowers do pay all closing costs, but those are paid at time of closing and not before. The only fee I could fathom having a borrower pay for before closing would be an appraisal, but I don't require those. I would definitely get at LEAST four or five references before I paid 800 or 900 dollars. Keep in mind, there are lots of dishonest people always looking to rip off unsuspecting consumers. Be care, get references, and also you might want to check with the BBB. Good luck.

p.s. "registration fee" sounds totally bogus