All Forum Posts by: James C.

@Kevin Uzelac

Will do Kevin, I'll move on and be patient. Thanks for the help.

@Guy Gimenez

Good point Guy,

I have read real estate books and watched YouTube videos the past 2 years but really I need to expand my network and be patient. I was trying hard to get into it now because I felt like I was ready. I'll take your advice and apply it. I appreciate the help.

@Kevin Uzelac

Hi Kevin, good point. I forgot to mention that they did provide references because I was very hesitant because it sounded too good of a deal. He first declined because he wanted me to just trust him and my $1,100 isn't a lot of money to scam over.

He then finally provided 3 references. All three had different names and replied at different times, all praising him. One even went so far as showing a Western Union invoice. Looked up the address the buyer chose, and realized it's one of those virtual mail offices if you don't want people to know where you live. I even tried to look up the IP address for all 3, but no luck. Only thing that stood out was that each reference says "cos" instead of because. That's the same way the "lender" texts. So he's most likely not legit.

I guess I would be an easier target because I lack funds to do it myself, that's why I'm trying to do wholesaling to raise capital.

Hey BP,

So I've been trying to get in real estate in the past year, but HML in my area (Philadelphia) have a lot of upfront cost plus fees just to purchase a property. Some are even requesting 20k just to purchase and additional money for rehab. I'm 23 just got out of college so I don't have that money at the moment.

I have a colleague that has a private lender that only funds the rehab, and my colleague found him on Craigslist. So I did the same. Issue is that a "lender" reached out. After I contacted him, he immediately asked what I think my loan amount will be, once I told him, he said no problem and emailed me a loan application. Mind you, only thing he requested was identification didn't ask to verify my income, check my credit score, nothing. He says I need to give him $1,100 as origination fee to cover the background screening and other fees, but his offer is too good to be true. He says that once I request the loan he will then verify my income and background check. 

5% interest rate, low monthly payment, 100% funding (purchase + rehab), no prepayment penalties and could close in 2 weeks. He's shown me a picture of his account, his face + ID, and even a video of him in frame stating his name.

I just feel uneasy because the deal sounds way too good to be true. What is the norm the BP community come across when dealing with private lenders?