Hard Money Fraud? some signs

As hard money Lenders and brokers we see lots of requests. Some are good people needing help, some are investors who have put together a solid deal and others are looking to make a quick buck and some are so crazy its funny.

some quick signs to look for :
is the value way, way higher than tax value of property or any property near your subject (you should always check)

is the exit a mysterious “take out” loan from a source , usually cant be verified

Is the appraisal vague and do the comps show property far away from subject

Is the borrower not the owner, is it confusing?

Is there a “hurry” to close

Beware, these are the signs of fraud. These will not close and will waste your time. There are some sophisticated scams regarding transferring deeds and ownership. They are harder to spot but you should always
INTERVIEW the borrower and owner of property. ALWAYS.

Just a friday afternoon thought….

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s