How to verify a private lender to buy NPN

[Haitham Elbedawy]

Hello BP,

  I was contacted by few people on Linkedin offering me private money lending to buy Non Performing Notes, for some reason they sounded like scammers, one of the things turned me off is they email me from their gmail account, they ask for an origination fee and in other times insurance fee to be sent over to them, but it can't be deducted from the loan amount, or added on top of the loan. Is there any tips to use in process of vetting private/hard money lenders.

Thanks in advance

[Cody Cox]

I use Joint Venture investors that are willing to fund the transaction for a split of the return rather than lend me money. I would not take on a debt partner for note investing. I prefer and equity partner.