Investors on Craigslist?

Question

I know I am new to this business, but I've been searching for a private money lender in my area. I saw someone posted on Craigslist they were looking to invest. I just wanted to ask what questions should I ask them/what would help me in knowing they are for real if I contact them? I've got an inside scoop on a house that will be coming available in the next couple weeks and I am about 99% sure the people would just sell to me and not even list(they are my bosses). Thanks for any tips and tricks on this!

Greg Dickerson · Answer

Before you start looking for private money make sure you have educated yourself on the market and the business. As for the lender you want to vet them thoroughly. Check Thier website, Ask for a term sheet and never pay upfront fees for a loan. Ask for references in your area including a closing agent or attorney they work with.

Cyle Harris · Answer

Yea @Logan Harrell I would agree 100% with @Tom S. comments above. I use to market heavily on Craigslist in search for cash buyers (not exactly lenders) and 99.9% of them were tire kickers. The best private money lenders are those already in your network or close to someone you know.

You could call them anyway as this wouldn't hurt, but I wouldn't get my hopes up.

Tom S. · Answer

@Logan Harrell  I'd say it's a 99.9% chance that someone posting on CL stating they're looking to invest (give strangers money) is a scam.

If you're planning to owner occupy you should ideally just look for conventional financing. 3.5% down and 3-4% fixed interest for 30 years, impossible to beat!

Or are you looking to rent it, flip it?

Dustin Morris · Answer

@Logan Harrell be very careful with Craigslist I’ve seen about 80 percent of my rentals listed relisted as a scam on Craigslist unfortunately....

Dan M. · Answer

I would say just reach out to them any hard money lender already has all the forms and know what they charge. Many will ask for alot of information upfront give them what you feel comfortable with. If you find a good one they will work for you as opposed to the other way around, but many will want the exact specifics of the deal to even consider lending. Then process is rather simple once you have an agreed upon points/ rate of interest its just a matter of signing an agreement and registering the lien with the title company. You may be able to find someone on BP in your area -perhaps through another member who has used someone before and can make a recommendation - instead of going through craigslist. You can also google search.   Good luck!

Investors on Craigslist?

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