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Updated over 9 years ago, 05/26/2015
Private lenders on Myhousedeal.com
Has anyone on BiggerPockets dealt with the private lenders on MyHouseDeal.com? Wanted to get some feedback before I reach out to some of the private lenders on their site.
I can tell you that they don't do any checking of "lending validity" on their "private lender" list. I know because I am one now. Regardless of your capability to lend, you can just put in an email address with any amount you want. So, ... set your expectations accordingly.
I purchased access to PrivateMoneyGoldmine which is the same as MyHouseDeal. My experience so far after calling 25-30 "lenders" is one scam artist, and seven fax numbers, one legit lender that does not lend into my state. Let me know if you succeed!
I have yet to get a reply on emails I have sent some of them.they say you should call. I have called but no return calls. Give it a try and share with us.
#5 Private Lending & Conventional Mortgage Advice Contributor
- Lender
- Los Angeles, CA
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#5 Private Lending & Conventional Mortgage Advice Contributor
- Lender
- Los Angeles, CA
Who knows, Del, you could get lucky. I bet you’d have more success taking the $97 they charge for a list and paying for half a dozen REI club admissions. Here, you’re likely to find serious individuals who take the time to meet the people they loan to and to get to know them and their properties. This is a relationship-based business.
Do you really want to do business with someone who says they’re a private lender and claims to loan nationwide at 3 or 6% as most do on this site? You don’t believe that do you?
There’s also no reason to pay for a list of hard money lenders. These too should be local. Just do a Google search in your city or look through Scotmanguide.com for free.
There are many threads here about PrivateMoneyGoldmine, @Eric Zander. Had you known, you could have saved some money by simply doing a forum search.
Jeff
Regarding "Do you really want to do business with someone who says they're a private lender and claims to loan nationwide at 3 or 6% as most do on this site? You don't believe that do you?" It all depends on the context of the deal. The way the question was posed to the lender is 'what is the minimum rate...' not 'what is your total expected rate of return'. Many lenders have debt and equity positions, so the minimum interest rate isn't necessarily indicative of the lender's return.
Did I mention I did find an actual live investor that lends in the greater LA area, I spoke directly with him. He had great rates and seemed to know his stuff. At this time I am not investing in CA market, so there ARE legit lenders getting themselfs out there using that format. When time permits I will be calling another page or two of numbers. There are also many hard money lenders and brokers who are using this venue successfully.
Hello everyone,
I've been communicating with a PL from the my house deals list and I am wondering if he is really legit. He requested my business plan and info about the property I am investing in, which is a reasonable and expected request. So I provided him the info and he is willing to fund the deal. He sent me his lending validity documents (business license, proof of funds, and past loans that he funded, and have been repaid by the borrowers). However, I am still a little skeptical, because there is a $750 brokerage fee I have to pay. Has anyone herd of this type of setup from a PL. I read a post a few weeks ago about PL scams and so I am being cautious.
Loan amount 175 K / 1yr term/ 4% interest. I haven't been able to get him live on the phone only communication have been via text messages, email. I filled out a online application. I just don't know what to think of this.
A 4% interest rates is incredibly low for this sort of loan.
An upfront fee is a warning sign you're being scammed. There's a good chance the only money that will ever change hands is that fee.
Your inability to actually speak with this person is also a warning sign.
#1 Foreclosures Contributor
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#1 Foreclosures Contributor
- Real Estate Professional
- West Palm Beach, FL
Rusharlette, as Jon said, keep your money. 4% absolutely, positively, guaranteed, bet the farm, take it to the bank, bet your grandmother's favorite frying pan on it.....is Not going to happen....unless it's your uncle.
- Realtor, General Contractor, and Developer
- Redding, CA & Bend OR
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There are a few other sites, one of them is actually associated with a BP member. http://goo.gl/WN0IAh and also www.scotsmanguide.com Hope this helps you.
Sorry, they aren't the neater links, but for some reason that's not working for me. Maybe @Brandon Turner can advise me.
- Karen Margrave
Thanks so much guys for responding so quickly. I had a gut feeling that something wasn't quite right, your advice confirmed my thoughts of this being a scam.
@KevinYeats, thank you for reaching out to me, I am sending you a message :-)
@KarenMargrave, thanks for the links! I am sure they will be helpful!
Originally posted by @Karen Margrave:
Sorry, they aren't the neater links, but for some reason that's not working for me. Maybe @Brandon Turner can advise me.
Karen, if you use the chain icon from the edit toolbar, you can have a really long URL but a very short description.
- Realtor, General Contractor, and Developer
- Redding, CA & Bend OR
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@Steve Babiak I tried, but that's what isn't working for some reason. I copied the link then when I click to attach it, nothing happens. I've used it before and it worked fine, but for the past few days it hasn't worked for me. Thanks for the reply though!
- Karen Margrave
To make the @ work, do the following:
Hold down the shift key and type the @?
Look below this Window, and you will a list of names. Click on the name of the person that you want to be notified via an email, that you left a reply.
Raymond
Regarding "However, I am still a little skeptical, because there is a $750 brokerage fee I have to pay..." Before I rush to judgment...
For all I know, your LTV could be 50%. You didn't disclose asset information, only the loan amount, terms, and a $750 fee. You didn't say if the fee was paid at closing or not. Did you look at how this guy did his other deals? You said he provided his lending validity documents of "past loans that he funded...." If he provided HUD-1s, you can see if the fee is on the closing documents. That fee of $750 is less than 1% of the loan, which isn't unreasonable if the fee is paid at closing rather than upfront. Did he provide a copy of the notes for the past loans that he funded? Is the rate at or about 4% also?
If the fee is pre-paid to him without a solid commitment, then I would tend to agree with others. Who is this "brokerage fee" supposed to be made out to, myHouseDeals.com or the lender?
I also am leary for a few of them on the site mentioned and another site where there is no validation of the lenders at all.
Any upfront costs for any reason is a scam.
It has to be a true real estate deal loan, meaning you have to provide numbers.
Also, protect yourself the best you can because they will be asking you for personal and banking information, as well.
Talk to you banker if you're still not convinced. Anyone can say or write anything down. It's up to you to perform due diligence. I had this guy hound me for a day and finally had to block because I wouldn't pay the fee. He even lowered it drastically, which I knew right then was a definite scam.
Out of 10 lenders, no one provided one shred of proof for anything.
BEWARE!!!
The internet is ripe ground for scammers. Anytime a person wants money upfront is a
major warning sign.
I know this is an old thread, but one that can be current. I have used myhousedeals.com and found similar scams AND legit lenders. I encourage calling. I advise on a strong BS filter when approaching those listed. Most are scams, some are good. I'll take that any day.