Hi ,
Do not assume that anyone you know understands how real estate works or knows about this scam. Here is the story, as told by private money lender Corey Dutton:
“A couple approached me for a bridge loan to buy a $3 million dollar house. They had already talked to a hard money lender that they found online. The hard money lender had a legitimate-looking website. The couple had been dealing with them, everything was going great, and then the lender asked the couple to wire him their down payment on the $3 million dollar purchase of 20%. That’s
$600,000. The couple, unassuming, wired this lender $600,000. What happened? POOF! $600,000 is gone. It’s a fake lender.
The lesson learned that you need to share with everybody you know is this: Like this couple, a lot of people you know probably don’t know that when you buy a property that you never, ever, under any circumstances, wire your down payment to your lender. You wire your down payment to your appointed title company, escrow company, or–in some states–a real estate attorney. Unfortunately,
this couple did not understand enough about how real estate works to know this. They went online and found a private money lender that looked like it had a legitimate website.
This is the second time I’ve heard of this happening in the last six months. So don’t assume that your brother-in-law, your best friend, or your colleagues know that when they purchase a property that they always wire their money to a title or escrow company. Share this video with them and help stop the spread of this fraud.”
To learn more and watch the video, check out the top story in our Note & Real Estate News section below.
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