Seems like a red flag to me..

One common red flag is if a lender requires an upfront fee before accepting an application or offering a term sheet.

If the old insurance carrier does not have proof of the replacement policy, they are obligated by law to continue to cover the property for the next 30-60 days.   

Going off that call and our friend, it would seem legit. however, we keep seeing alot of red flags.

Too many splits, hurdles, tiers, fees is an automatic alert flag for me.

If an operator does not do this, it's a huge red flag.  

If no one has used or heard of them then it could be a yellow flag.

I had a water line leak and the plumber came out same day but there was still a 2 day wait until they could fix it since the utilities had to be flagged by the city before they could dig so others have said this is a slow process and there was plenty of time to contact you. 

If you are borrowing funds for RE investments, then the bottom going rate for new investors (which I assume you are due to the question) should be expected to start at 10% annually and go up from there.  3% screams red flags and scammer alert. 

Well, when I saw the application come through (we have the application set up online through Apartments.com), something stood out to me like a red flag.