Beretta Only: Warning Signs Of Bad Hard Money Lenders in Colorado

Tuesday, January 1, 2019

Warning Signs Of Bad Hard Money Lenders in Colorado

Hard Money Lenders in Colorado tend to have a less than great reputations because most borrowers do not understand who they are or what they do for a living. But there are a few warning signs that can steer you away from potential scammers.

Getting a traditional loan is simple in that you go to a brick and mortar bank location or a website and you know that you are dealing with a legitimate lending institution which is federally regulated. But Hard Money Lenders in Colorado are not as easy to locate as a bank or mortgage company. And you might not be able to tell legitimate Hard Money Lenders in Colorado from scam artists unless you are familiar with a few signs or giveaways that will clue you into the truth.

Every borrower wants to find a good deal and feel like a savvy business person, but there is a limit to what you can expect. Lenders are in business to make money and if the deal looks too good to be true then it probably is a scam. Some scams will actually loan you money but at a much higher cost than they initially explained to you. You will find that there are many hidden fees and even an increase in the interest rate under certain conditions. Get everything in writing when you are quoted a cost for any loan. Other lenders will claim very low rates and no additional fees after you pay a high application fee. Those are scam artists who will take your money and personal information and never be reachable again. Not only do you lose your money but they are also likely to try to steal your identity.

It is also smart to beware of new lenders in town. If the lender has no history then it is likely a person who collects application fees and then quickly changes business names to scam more potential borrowers. Check out every lender with the Better Business Bureau in your area and other agencies who oversee lenders in your state.

Read The Fine Print

Any legitimate lender will be open to providing you with a complete copy of the loan documents before you sign them. It is always wise to have loan docs reviewed by a legal professional. This gives you the opportunity to ask questions about your legal rights and what is expected of you if you sign the loan document. Less than reputable lenders will add in clauses about a single late payment being grounds for default or a huge increase in your interest rate. Invest the time and money to get a second set of knowledgeable eyes to look at all legally binding agreements before you sign them.

Pay Attention

Most people can very quickly evaluate how well they will work with a person they have just met. In the end, you are selecting a person who you hope to work with on many projects and for many years during your real estate career. So take the time to make a solid assessment of each of the potential Hard Money Lenders in Colorado, and then select the one who best meets all of your needs.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

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 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.