Description: This passage is mainly about cashnetusa login. In this passage, the writer tells us five red flags to help us determine if the lender that we are dealing with is a loan scam in order not to be a victim of an upfront fee scam.
This is Cory from private money Utah, and tonight I’m going to be talking to you about long scams and hard money, specifically fee lending scams or fee scams which is also called upfront fee scams.
It is an upfront fee that a lender is trying to charge you in exchange for a loan, which is prior to the loan being given, you get a letter of intent and all the terms are laid out for you beautifully, and then there’s this fee that’s tacked on there, and what is it called? It can be called legal fee, administrative fee, a due diligence fee or underwriting fee.
I’ve even seen these fake lenders trying to get people to buy life insurance, they give you the term sheet, all the terms are laid out and you’re approved, and then they ask you to buy a life insurance policy that will pay the loan off in the event that you died, it seems reasonable, it’s a scam, how do you determine whether the hard money lender that you’re dealing with is a scam artist or not?
That’s the tricky part, because legitimate lenders and real lenders are going to charge upfront fees, because they want to convey you to the loan, they want to make sure that you’re serious about moving forward, but you’ve got the loan scans over here, the scam artists and the upfront fee collectors, and then you’ve got the legitimate lenders over here.
So how do you determine if both of them are charging enough front fee? How do you determine which one is real and which one is not? We’re going to talk about five red flags to look for tonight to make it a little bit easier on you to determine whether the lender that you’re dealing with is a scam artist or not.
The first one is that overseas lender with an overseas office claims to lend on real estate in the US, you’ve gone to them with a project in the US, with a real estate project or property and they’re an overseas lender, they’re located in London, Singapore or Hong Kong, don’t deal with those types of people unless it’s referred to you from a friend or colleague business partner or somebody that’s done with this person before and make about for their legitimacy.
The second one is that the lender says that they have an office in the US, they have an American sounding name, I know that’s not politically correct, for example, the name is Jim Smith Paul Ryan, they say that they have an office in the United States, but you speak to this person over the phone and they seem to have an accent.
It seems that they may be from overseas or look at the email, read the emails that you’re getting from this person, if they are in a broken English, if it is grammatically correct, and they have an office in the US and they have an American sounding name, but their English is a little off, it is a huge red flag to look for people.
The third one is that there are few or limited requirements to qualify for the loan, you’ve been looking for financing for a while on this project or on this property, maybe you’ve had some loan denials, maybe the terms that you’ve gotten have been steep and high expensive, and then all of a sudden, this lender immediately provides you with a term sheet, and then you see the requirements on the term sheet and there aren’t a lot.
They’re ready to give you a loan, they send you wiring instructions, that is not real, that is too good to be true. The fourth one is too good to be true, have you compared the terms from other hard money and private money lenders? If the terms are 4% or 5% interest, we’re offering you a 60-year term.
The other hard money lenders that you’ve talked to maybe offer you 12%, maybe they’re offering a two-year term that doesn’t jive, the terms are too good to be true, so if the terms seem too good to be true, they probably are.
Finally, the fifth one is not a red flag, but it’s a word to the wise, because a private money lender has a fancy office, they have a fancy website, maybe there are offices in Chicago, maybe their offices are in New York, maybe you have visited them, that does not mean that he is a legitimate private money lender.
If they’re offering you a term sheet with the very high upfront fee of fifty hundred thousand dollars, do your research beyond the references that they’re going to provide, there are your five red flags for determining if the lender that you’re dealing with is a loan scam, hopefully that will help and steer you in the right direction, have a great night.