Hard Money Loan Scams Reviewing The Top Four Types Of Scams In Private Lending
Introduction Hard money loans involve asset-based loan financing. The borrower’s loan request is approved when real property is placed as collateral. However, as reviewed by financial analysts, there are many fraud hard money lending players out there in the private lending space who reach out via spam mails or are found through fake ads. This is primarily because of lack of regulation. To spread awareness, we will list out some of the most fishy types of hard money lending programs that are scams so that you can keep your assets secure.
Hard Money Scams & Fraud Upfront Fake Fee Collection Bait & Switch Lenders The “Two Good To Be True” Fake Lender
Upfront Fee Collection As reviewed at finance conferences such as the Money 2.0 Conference, these spammy lenders make money by charging exorbitant amounts just to approve your loan. If they are charging you more than a thousand dollars, it is most likely a scam. You will easily get better rates elsewhere.
Bait & Switch Lender The fraudulent lender, in such a situation, realizes your urgent need for a loan and tries to make money off it. At the last moment, they may review and raise the rates or give you a less desirable loan term for their benefit, even after promising you earlier that their loan programs are the best in the market.
The “Two Good To Be True” Fake Lender
Here, the lender’s goal is to lure you with empty promises of loans, which usually turn out to be fake. They may send you spammy links, that lead to fake websites of authentic lenders. These websites may steal your personal information and financial details. In other cases, these spammy lenders may demand fees. Once you transfer the amount to them, they may delay the approval process for weeks and even months. Ultimately, they cease contact.
Red Flags ● ● ● ● ● ●
No physical address The lenders’ emails are marked spam High-pressure sales tactics Less requirements Poor reviews Claim to be located in the United States but they are actually based overseas.
THANK YOU! Presented & Reviewed By: Yash Dogra, Manager, Money 2.0 Conference https://www.money2conf.com/