Investors in need of money

Would anybody be able to answer my question?

I had an investor from one of the online reiclub groups says hes willing to make that transaction. But how do i know if hes legit? What papers do I ask him for?

Are these new investors?
What does their credit look like?
Do these investors have any mentors that would protect them from a bad deal?
Do you (or they) know anyone that has an under performing retirement account?
Are the investors DG students / Success Academy graduates?
Etc.

As for the other investor, does s/he have proof of funds?

You might consider just doing assignments for a flat fee vs a percentage base. Whether or not it's true, I'm not sure, but if it's a percentage then you might be considered a real estate broker. This might be the "legal" concern that others have been having.

I had a private lender say hey would lend money on a good deal which I have a few in the making. I talked to a realtor and they said I need proof of funds. THe private lender told me that if they want proof of funds then I should find a new realtor. I know I cant make offers on these REOs and Forclosures without it. I called back the lender (which seemed liked he wanted to help me seeing he spend and hour on the phone with me) only to get no reply. Do you have to pay one of these sites to find a lender or are there lenders out there you can find for nothing without having to hold a lunchon or running ads?

Are these new investors?
They have been attending real estate clubs and meetings for probably just about under a year. But they have done deals before.

What does their credit look like?
-I didn't get there credit score/report. These are investors I talk to from my real estate meetings whos always asking for private money. I haven't screen them out because i didn't have the money to offer them financing. Once I raise money or find a private lender then I'll do a screening process.

Do these investors have any mentors that would protect them from a bad deal?
-I only know one them who have a mentor that Ive actually seen. (about 5 in total)

Do you (or they) know anyone that has an under performing retirement account?
-My next step is to Contact people with under performing IRA accounts. First I want to reach out to private lenders and if none of them want to partner up then I'll going to target people with those retirement account and raise the money on my own.

Are the investors DG students / Success Academy graduates?
-No but I wish.

You could find lenders by going to your local real estate club. Or you could go online and join a reiclub group there. Or you simply type private money in google and see what pops up

The reason why I was asking about them being Success Academy graduates (the 3-day initial training) is if they were, they should have access to Hard Money via the success academy. The success academy/ DG would charge 2% of the loan + $495. The success academy would only lend if the person is a Success Academy graduate and that they would approve the deal (they would have to agree that it would be a good deal for both you and them). This info is taken from one of the free traveling sales pitches for the Success Academy training.

I believe they are talking transactional funding, NOT hard money. 2% plus a fee. They will fund the double close when your buyers money is already in escrow. This is completely different from Hard Money loans.

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

sure about the legality of paying you 3-4% higher, but I know it is done; whether its legal or not. Bumping up for others that may know the answer to this.

it is illegal as that would make you a broker. And if you don't have a license, you would be in violation of state and/or federal laws (depending on the states involved).

since you are doing the work, you are making the contacts, securing PM why don't YOU utilize the PM to fund YOUR projects?

just a thought......

My thoughts exactly!!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

Nah these aren't DG students...I wish they were.

I want to you use private money to fund my deals, and other peoples deals as well.

Well to aviod federal law suits im just going to attack people with CDs, savings, and retirement accounts. Thanks for the advice.