Sadly, every industry is plagued by fraudulent impersonators who are tarnishing the reputation of trained professionals in the field. And commercial lenders face this issue as often as any other group of professionals in a rather technical business. Because borrowers are often unfamiliar with the processes and standard operating procedures of commercial lending it is relatively easy for predators to operate on the fringe of the industry taking advantage of would be borrowers. Knowing what to look out for can save you both time and money.
Due diligence is a must when you are preparing to disclose a huge amount of personal and business financial information in the form of a loan application. Obviously, walking into a bank can eliminate this potential hazard. But many borrowers are now shopping for commercial loans online and that can open the door for many issues. It is critical that you research the party and the business that you believe you are working with for a loan application. Verifying the business as a legitimate lender will provide you with security and peace of mind. Anyone can create a rather impressive website now so make calls to the BBB and to the state authorities where the business is operating. Check the registered name and licensing to be sure that they are legitimate.
After your research is completed you will know that you have avoided one of the biggest moneymaking scams of the fake commercial lenders. They are not really interested in stealing your information. What they want is to steal an application fee from you. Fees can range from a few thousand dollars to tens of thousands of dollars so it is a good score for a scam artist. You submit an application and the fees and then never hear from the would-be lender again.
If you are having difficulty getting a loan, also be weary of a lender who offers to all but promise that they can get you a loan if you are only willing to pay a substantial application fee. Unfortunately there are some lenders who are just dishonest enough to all but promise in writing a loan approval when they know that you will not qualify. They might claim to fund high risk borrowers but in fact they fund very fee and just collect huge application fees from the majority of their applicants.
If you are new to the commercial lending industry, then the best way to avoid being taken advantage of is to arm yourself with knowledge. Legitimate commercial lenders will answer questions, provide information and invest the time it takes to make sure that you are comfortable with the process. You can also read material from well-known lenders websites and consult with your local bank to learn more about the process and to protect your time and money.
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.