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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 111525
Experience:  Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
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Have you ever heard of a Private Lender called Steady

Customer Question

Have you ever heard of a Private Lender called Steady Private Loan? They are asking for an $800 upfront fee as a condition of receiving a loan.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Barrister replied 1 year ago.

Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can.

.

I haven't heard of them personally, but according to their website: http://www.steadyprivateloan.com/

they are a hard money lender, which means that they will loan on assets when a conventional lender won't as they take higher risks. However, this means that they charge higher interest as well.

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As for an up front fee..that send up some red flags for me because if you want to borrow $XX, there is no reason why they couldn't just deduct their loan fee from $XX if you are approved. My concern is you pay the fee, and then then they say "sorry, you don't qualify" and you are out $800, or they do qualify you, but for a ridiculously high interest rate.

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They have a Delaware address and the DE Sec of State shows that two similarly named companies were incorporated last month on 9/9/2015 for one company called SPL ALTERNATIVE INVESTMENTS FUND, L.P and another one was formed about about a month and a half ago on 8/19/2015 called SPL ALTERNATIVE INVESTMENTS FUND GP, LLC. I am not sure if these are the same company or not, but there is no Steady Private Loan company registered with the NY , DE, or CT Sec of State

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This also sends up some big red flags..

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thanks

Barrister

Customer: replied 1 year ago.
Perhaps you may want to send someone to help; I need an answer from someone who has heard of this private lender or knows someone who has received a loan from them or to tell me something a little closer than something being a red flag; your answer is too generalized for me to accept and than pay such a high fee. Perhaps a person who's familiar with fraud cases of people posing as lenders. Connected investors had someone who said this lender would not accept an escrow and I would only want to take this risk by an arrangement through someone like an escrow or a payment processor who would refund me in case of fraud; PayPal is a good example, but, I cannot use them right now, but, with something similar; I sure wont send a Western Union transaction their way, at least not unless someone can be located who somehow has experience with them; reading their website is not sufficient of a search.
Expert:  Barrister replied 1 year ago.

No worries, I will opt out and open up the question to other experts who might have heard of this company..

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thanks

Barrister

Customer: replied 1 year ago.
Perhaps you may want to send someone to help; I need an answer from someone who has heard of this private lender or knows someone who has received a loan from them or to tell me something a little closer than something being a red flag; your answer is too generalized for me to accept and than pay such a high fee. Perhaps a person who's familiar with fraud cases of people posing as lenders. Connected investors had someone who said this lender would not accept an escrow and I would only want to take this risk by an arrangement through someone like an escrow or a payment processor who would refund me in case of fraud; additionally, someone at BiggerPockets was asking about them back in January, either 2014 or earlier this year. PayPal is a good example, but, I cannot use them right now, but, with something similar; I sure wont send a Western Union transaction their way, at least not unless someone can be located who somehow has experience with them; reading their website is not sufficient of a search. Thanks.
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

I am a DIFFERENT CONTRIBUTOR, as your other expert stepped away.

The company you are mentioning has been reported as having deceived other customers. See: https://www.linkedin.com/grp/post/4167485-5945355748321095682.

The bot***** *****ne is what you are describing is an advance fee scam, which is where they charge you money and fees up front to loan you money. The fact is they prey on poor people who would not be looking to borrow money if they really could afford the advance fees these companies charge. Also, see other complaints about this company: http://blog.dynamoo.com/2015/09/evil-network-6420511629-interserver-inc.html

You can also read here about these advance fee loan scams: http://www.bbb.org/chicago/news-events/news-releases/2014/08/the-better-business-bureau-issues-alert-on-loan-scam/

The setup you describe is just an advance fee game and these companies change names so frequently it is almost impossible for us to keep up with them.

Customer: replied 1 year ago.
The LinkedIn link that you sent is broken; will you please resend it?
Expert:  Law Educator, Esq. replied 1 year ago.

The link is not broken, this site has an issue with links, I just used it, you have to copy and paste it into your browser. I have reported it to our tech people several times, but they are still working on fixing the link issues and I apologize.

Customer: replied 1 year ago.
I can't see the whole link; will you type out the link so that it is fully visible?
Customer: replied 1 year ago.
Ok, thank you for your help in helping me to avoid what seems to have been a scam; I sent this dude an email asking if he'd accept escrow, but he has not responded; however, both links only point to two complaints from the same individuals and they didn't say anything specific other than sending the fee, at least in the case of one; Goldmine only lead back to one complaint, but, they did have a website that attracted many of these advanced loan fee scammers; it's a shame that they seems to have hijacked LinkedIn (e.g. I know someone who got scammed from someone doing something similar who was on LinkedIn).
Also, is anything on NS Lenders Corp? They haven't asked for an upfront fee, but, I'm waiting to hear back from them; a representative (***** *****son) referred me to an attorney to go through a loan agreement contract; their application seemed more legitimate; but, since I couldn't respond to their email after about 8 hours, I haven't received any further response from their representative who could have though I developed doubts after finding something on them; I'll see if I hear back from them or if they ask for an upfront fee, but, please, let me know if you find something.
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your reply.

The issues come up with anyone asking for money up front. If they are not asking you for money up front and any fees come out of the loan itself, you should be fine.

As I told you these companies set up overnight, so keeping track of all of their names is impossible and I find nothing on NS Lenders at all.

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