The following four tips will help you find real hard money lenders and avoid swindlers posing as private investors.

The first tip is to get references. Trusting someone who calls you on the phone is not wise. Those funding deals should be able to give you references from former clients. Two client references who have closed a loan in the past three months will help you weed out the real lenders from those pretending to be lenders. By getting the name of the title company or the lawyer who closed the loan, you can verify that the loan was an authentic one.

The second tip is to do your own research. You can research through the internet and by calling the Better Business Bureau. You can find out about their registration, their investor licensing, and if they have been blacklisted by borrowers. The better informed you are about the lender, the more likely you are to make a sound decision about them.

The third tip may seem obvious but many people make this mistake–don’t send them money for costs like appraisal fees even after they have sent a letter of intent. A nice website and a professional looking website are not proof of authenticity. You have to be careful.

And the fourth tip is ask many questions. Who is providing the money? Who is writing the check? Who is the private investor or company? How is the money coming to you? Is there a letter that shows proof of funds? If the lender says it is coming from the hedge fund, find out the name and the terms of the hedge fund. Find out all about the lender before getting involved–office, address, contacts, references, proof, and so on.

The Hard Money Team can offer essential information on hard money lending. They can be contacted at 512-692-4195. Call them today for more information. You can also visit their website: www.HardMoneyTeam.com