When shopping for hard money lenders online, there are particular things to look for as well as certain things in order to avoid. As with any internet transaction, whenever personal information will be requested, the consumer needs to be careful.
The Federal trade commission says which con artists possess gone high-tech. There are numerous reports from individuals who have been taken in. In many cases, alternatives to conventional loans are the best approach to take. You just need to choose your loan company carefully. The following, we hope to provide you with the information you need to find a genuine company to cope with.
Many of the companies that advertise hard money signature loans online are usually payday lenders. As the payday loan just isn't a true scam, the charges that the businesses charge are usually equivalent to yearly interest rates in the double numbers. This type of online loans is not the right choice for whoever has an option, but is definitely incorrect for the real estate investor. If you are new to investment, looking to buy, build or flip a property, you ought to be looking for lenders that advertise rehabilitation funding, development loans or something similar.
Brokers are usually another party that advertises hard money loans on the web. If you use a brokerage, you are paying him or her to look out in order to find financing for you. They may or may not be able to provide a reverse phone lookup. Avoid the ones that ask for large up-front fees, anything more than a few hundred being an application charge. There have been reports of consumers that paid 1000s of dollars to agents that guaranteed funding. Not only was there simply no loan, they lost the amount of money that they compensated to the dealer.
Legitimate companies offering tough money personal loans online seldom list their services with a broker. They are able to do their particular advertising. They may have associates that recommend clients for them, but the consumer does not pay out a fee for the recommendation.
Remember that at any time an online site requests credit card or any other personal information, they must be a listed secure website. They should use a complete online privacy policy available for your inspection.
It is much best to use a lender that has you send your information in their mind by typical registered snail mail, rather than e-mail. They may request a copy of your credit report, but they would not need your credit card numbers. You might feel like regular snail mail is slower, but it is safer. You could always send the application overnight. You can get pre-approval while you are still trying to find the right property, so there's no real have to rush. Not all companies offering hard money loans online have a pre-approval system, so try to find one that can.
Currently the FTC lists no complaints with hard money lenders, although there are many along with payday lenders, but when you have a concern about a specific company, you can check Federal Trade Commission's web site (www.federal trade commission.gov) and run a search for the company name. When nothing comes up, then no complaints are already filed your company.