Today's world is filled with floating technology and information everywhere. It is always important to be careful whom you give your information to and where you put it. Especially when doing things over the Internet. Current privacy laws or lack there of have made it possible for researchers and marketers to use search information and other information to appeal to specifically you. There are always things to be careful with when working over the Internet. In every business there can be scams in disguise and doing your research never hurt anybody. Here are a few things to look out for when looking for a hard lender close to you.
Introductory Fee: One of the most common in this lending industry. Everyday day there is a new fake website or ad on Craigslist claiming to be a hard moneylender. The entities will never get you past the introductory phases. They are in the business of making money of collecting application and upfront fees.
The mouse trap: Another one of these companies will get you through all of the paperwork and give terms to agree to. The catch is that they give a really attractive contract offer to get the client to eliminate all other options. When all options are eliminated then the terms are changed by lowering the loan amount and give you less money. This in turn requires you to bring in your own money, which should not be the case. You are using hard money as a line of credit or finance to not use your personal money.
Catch and Release: These hard moneylenders will get all of your paperwork and information and essentially get your hopes up. They will take an initiation or another type fee and essentially they will forget about you because they only do that type of business of scamming. What usually happens is an investor will notice months pass by until a hard moneylender will return a call; this is extremely looked down upon in the business. At this point the loan could already be declined, meaning the client paid an application or initiation fee for nothing. They essentially threw their money away.
Say it isn't so: the hard moneylenders make tons of promises that look so appealing to the client. They promise everything that you would need. This quickly allows you to eliminate other options. But, then the investor soon finds out that these terms are not much different than all of the others presented. There are always "junk fees" when a loan like this is involved so, it is important to pay close attention to these.
Yanni Raz is a hard money lenders and trust deed investments specialist as well as a blogger and contributor. The goal is to educate other real estate investors before they are getting into bad real estate deals.
Introductory Fee: One of the most common in this lending industry. Everyday day there is a new fake website or ad on Craigslist claiming to be a hard moneylender. The entities will never get you past the introductory phases. They are in the business of making money of collecting application and upfront fees.
The mouse trap: Another one of these companies will get you through all of the paperwork and give terms to agree to. The catch is that they give a really attractive contract offer to get the client to eliminate all other options. When all options are eliminated then the terms are changed by lowering the loan amount and give you less money. This in turn requires you to bring in your own money, which should not be the case. You are using hard money as a line of credit or finance to not use your personal money.
Catch and Release: These hard moneylenders will get all of your paperwork and information and essentially get your hopes up. They will take an initiation or another type fee and essentially they will forget about you because they only do that type of business of scamming. What usually happens is an investor will notice months pass by until a hard moneylender will return a call; this is extremely looked down upon in the business. At this point the loan could already be declined, meaning the client paid an application or initiation fee for nothing. They essentially threw their money away.
Say it isn't so: the hard moneylenders make tons of promises that look so appealing to the client. They promise everything that you would need. This quickly allows you to eliminate other options. But, then the investor soon finds out that these terms are not much different than all of the others presented. There are always "junk fees" when a loan like this is involved so, it is important to pay close attention to these.
Yanni Raz is a hard money lenders and trust deed investments specialist as well as a blogger and contributor. The goal is to educate other real estate investors before they are getting into bad real estate deals.