Comments on: Q&A: How do you verify that a private money lender for real estate financing is a legitimate business not a scam? http://www.refinancing100.com/blog/2011/10/31/qa-how-do-you-verify-that-a-private-money-lender-for-real-estate-financing-is-a-legitimate-business-not-a-scam/ Mon, 31 Oct 2011 12:25:41 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Ed Atun http://www.refinancing100.com/blog/2011/10/31/qa-how-do-you-verify-that-a-private-money-lender-for-real-estate-financing-is-a-legitimate-business-not-a-scam/#comment-18 Ed Atun Mon, 31 Oct 2011 11:05:25 +0000 http://refinancing100.com/?p=13#comment-18 There are only 2 possible ways. Call references and hope that they are telling you the truth. Demand that the entire sum be placed in a neutral place (escrow) one week before you need it. Then you can be guaranteed that it exists. You would have to pay interest for that week, but it would be worth it. One of the biggest private lenders in Phoenix had 18 loans waiting to be funded when they closed their doors. No advance notice. All the buyers had their earnest money at risk. There are only 2 possible ways.

Call references and hope that they are telling you the truth.

Demand that the entire sum be placed in a neutral place (escrow) one week before you need it. Then you can be guaranteed that it exists. You would have to pay interest for that week, but it would be worth it.

One of the biggest private lenders in Phoenix had 18 loans waiting to be funded when they closed their doors. No advance notice. All the buyers had their earnest money at risk.

]]> By: reenzz http://www.refinancing100.com/blog/2011/10/31/qa-how-do-you-verify-that-a-private-money-lender-for-real-estate-financing-is-a-legitimate-business-not-a-scam/#comment-17 reenzz Mon, 31 Oct 2011 10:58:17 +0000 http://refinancing100.com/?p=13#comment-17 You can also call your local District Attorney's office. They will let you know if they are licensed with the state. You can also call your local District Attorney’s office. They will let you know if they are licensed with the state.

]]>