I’m looking for a private money lender and one person gave me their info via FB to start applying, but I don’t know how to know if this person is legitimate and not a scammer once he gets my info. He says all he needs is collateral. I don’t know if there are certain questions I should be asking. I asked him to send me some information and this is what he emailed me....
Good day
I can be able to help you with the funding asap... Kindly go through
my terms before we proceed
Below are my terms and conditions. Go through them
Q. Are you a direct lender?
Alan Jones is a direct, private money lender serving
residential rehab
investors who acquire, renovate, sell, and rent properties. We lend
our own money.
Q. What is your lending capacity?
We are backed by Garrison Partners, a premier $4 billion private
equity firm. We also
have bank lines from several banks. We offer lines of credit and loans up to
$70,000,000,00
Q. What loan products do you specialize in?
We provide all kids of loans. We give out loans nationwide
Terms And Conditions
Q. Where do you lend?
We currently lend nationwide
Q. What are your minimum/maximum loan amounts?
Our lines of credit and loans range from $20,000 up to $70,000,000.00
Q. Is there a pre-payment penalty?
No prepayment penalty (2 months minimum interest). Certain
rental loans have a prepayment penalty.
What are your rates and origination fees?
We design our pricing specific to every deal. After our initial
borrower review, we can
quote specific rates and points.
Q. What are the costs to close a loan?
There are NO costs for a borrower to get approved and open a line of
credit with JCF.
Once the borrower has a collateral, the loan will be approved
Q. Do you offer construction draws?
Yes, we lend approximately 100% of rehab expenses based on work completion. Many
borrowers take 1-3 draws.
Q. How long does the loan process take?
Initially, we underwrite the borrower. This can take as little as 5
business days,
assuming we immediately receive complete documentation. Once a borrower is
approved for a line of credit, we can close loans on purchases and
refinances as quick
as 5-10 business days. For rental loans we may review properties first.
Q. Do you have a minimum net worth requirement?
Occasionally we make exceptions.
Q. Do you make exceptions to your guidelines?
Yes
Q. Do you only lend to individuals and what type of residency do you allow?
We lend to Individuals, Corporations, LLC's and Trusts. Borrowers can
be U.S. Citizens,
Permanent Residents, Non-Permanent Resident Aliens and Foreign Nationals.
.
Q. What if the potential borrower had a bankruptcy?
That is no issue
Q. Will you consider a borrower that does not have experience in real estate
investing?
Yes.
Q. What if the borrower’s credit score has suffered some damage?
Base on compensating factors such as the borrower’s experience and
liquidity, a loan
will still be considered.
Q. Will you take 2nd lien position?
Yes.
Q. Do you set up escrow accounts for taxes and insurance?
No escrow accounts are set up for loans.
Q. As a Broker, how do I get paid?
Brokers are paid off the settlement statement
