So, to ensure that a lender is legitimate, you can do the following:
1. Check if the lender is licensed: In Canada, lenders must be licensed and registered with the provincial or territorial regulator. You can check if the lender is registered and in good standing with the regulator in your province or territory. 2. Research the lender: Look up the lender's website and search for online reviews and complaints from other borrowers. This will give you an idea of their reputation and track record. 3. Check the lender's credentials: Check the lender's credentials, such as their experience in the industry, education, and professional affiliations. 4. Ask for references: Ask the lender for references from previous clients who can provide feedback on their experience. 5. Consult with a lawyer: Consider hiring a lawyer to review the loan agreement and provide legal advice before signing any contracts. Second, you should ask the following questions (and if the answer to any is “yes,” it’s probably a red flag, pointing to a scam): • Is there a major upfront fee? • Does the lender seem a little too eager to give you the money? In other words, do they skip asking you essential questions and get right down to the “money talk?”
My story:
I've used different private lenders in our passive real estate investments. In 2022, I incorporated private lending into our investment portfolio. This move proved highly gratifying,
36
Powered by FlippingBook