Commercial Hard Money Lenders

Discussion in 'Private & Conventional Lending Discussion' started by CSHVivien, Feb 4, 2015.

  1. CSHVivien

    CSHVivien Member

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    Amazing. Now why would anyone want to use a hard money lender?


    A few years ago, the hard money guys were charging people thousands of dollars for seminars on flipping.
    The victim was taught to buy property for 30% or 40% of market value, and resell it in 60 days to pay off the note. Of course, it was all predicated on using the hard money lender. No resale? The hard money guy foreclosed.


    I had one fellow in the office who was completely convinced the scheme would work, and who hinted that I was holding back good inventory from him.


    This was after the bloodsuckers took $7000 from him to "teach" him how to get rich in real estate.
    He had no contractors. Figured I could hook him up.


    He had enough cash for equity to get the hard money for a property. They had him convinced.


    As far as I could tell, all it was was a scheme to use him as a bird dog, locate a bigger loser with property that could be picked up on the cheap, and then foreclose on this poor guy and ruin him. And, they took an easy 7 grand from him, just in case he chumped out and couldn't find anything for them.It was sickening.


    And from what I can tell, it is not an uncommon approach. Have the victim put 30% or 40% down, and when he fails, as he is nearly certain to, then take the property from him at the loan amount. Instant equity for the shark.
     

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