Avatar's Blog
» Due Diligence Process Reveals Fraud
Posted on 5/27/2005
Both conventional and hard money commercial lenders perform "due
diligence", a process whereby the validity of statements made by the
borrower, and the value of the property involved, is authenticated.
Hard money lenders must work quickly and efficiently to determine the
value of the subject property, as well as determine the veracity of the
financial documentation provided by the borrower.
Signs of fraud in loan packages can be found in inconsistent financial data, poorly maintained or hastily made profit and loss statements, lack of willingness to provide tax records for personal income, corporate income, or the property, etc. The more 'transparent' your financial affairs, the better your chances are for getting funded with a hard money loan at an advantageous rate in a timely manner.
Posted in Miscellaneous
Signs of fraud in loan packages can be found in inconsistent financial data, poorly maintained or hastily made profit and loss statements, lack of willingness to provide tax records for personal income, corporate income, or the property, etc. The more 'transparent' your financial affairs, the better your chances are for getting funded with a hard money loan at an advantageous rate in a timely manner.
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