How to avoid Orchard money lenders Scam Schemes?

Orchard money lending makes it possible to get a loan for real estate investment without going through the conventional lending process. Getting loans from banks might be strenuous as it involves too much paperwork and regulations that could hinder you from getting the desired loans. You can opt for a loan from an Orchard money lender without going through the strenuous process.

Unfortunately, many scams pose as loan lenders as the Orchard loan lenders are not regulated like the traditional lenders. Most of these lenders offer their services online, and it might be hard to recognize a genuine lender online, and you should be vigilant in your research before applying for a loan. Here are signs of scam you should watch for when looking for an Orchard loan online.

Orchard money lenders

They Ask For an Upfront Fee

If the Orchard loan lender asks for an application fee, don’t do it as it might be a scam. If the application does not go through, you will lose your money; moreover, you will likely be paying a fake hard money lender who has no intention of funding your loan. Furthermore, if the lender wants you to send money to anyone other than their legal company, that should be a red flag. Moreover, when wiring money to a title company, it is wise to verify the company before sending it.

Identity Theft

You should verify the Orchard lender’s true identity before applying for loans on their website. It is easy to steal financial information when you fill out forms online. You should not trust an online loan lender easily as they can steal your data, take money from your accounts, and steal your identity. You should look for the Orchard lender online reviews about how they safeguard customer information. Moreover, if the lenders do not respond to the submitted application forms, there is a high chance that they are identity thieves.

If It Sounds Too Good, It Might Be a Scam

If the Orchard lender’s terms sound too good, it could be a scam. You should look at their interest rates, as they should be reasonable. The average speed should be about 10-15%, and anything below is a red flag. If their rates are low, they could be fake lenders who have no intention of servicing your loan.

Orchard money lenders

Bait And Switch Orchard Lender Loan Scams

Bait and switch loan scams happen often, the lender offers the cheapest loans within a short time, and they know that you want the loan quickly. They will eventually change the terms at the last minute when you have no option; with no time to find another lender and your project deadline approaching, you will accept the revised unfavourable terms.

Final Thoughts

Although you could opt for conventional loans for your real estate investments, getting the loans could be strenuous as lenders have too many rules. Fortunately, you can find these loans through hard money loans online. However, Orchard loans are prone to scams, and you should verify the authentic documents of the lenders before taking a loan from them. Moreover, you should read other people’s reviews and look for signs such as bait switching, unanswered applications and identity theft. Good luck in finding a genuine Orchard lender.

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