Hard money lenders California—For every success story and for every honest lender there is a story about a dishonest one. The story of Ezuabo is one of the dirty ones.
When people talk about—well, just about anything, they will compare it to something else. It’s like by comparing one thing to another thing, which people are more familiar with, we can understand how beautiful or terrible something is.
For example, how many times have you heard a tired person talk about drinking a good cup of coffee and how the “fog suddenly lifted?” Have you ever heard something that just walked into the room, joined a conversation, or been hired on described as a “breath of fresh air?” Or how about the teacher that’s as mean as the Wicked Witch of the West?
Get the idea? So—with that in mind—if any of the hard money lenders in California you are considering going with have been described as “similar to Ezubao”—run away. Run far away.
The Story Of Ezubao
At first, the story of this hard money lender in China was your typical rags to riches kind of story. It’s founder, Ding Ning, was a 34-year old high school dropout. He opened the company in numerous cities and took out some expensive ads to promote the venture. It wasn’t your typical lending company, though. No, it focused on working with individuals with poor credit histories that could not get approved for a traditional loan.
With over 1.3 billion people living in China, it is safe to say that there were thousands if not millions of people seeking out loans in China that fit perfectly into the segment of the population Ezubao wanted to target–or at least that was what Ning wanted his investors to believe.
Ning could justify the insane number of borrowers he claimed the company had because his interest rates were not higher than the banks like the typically are for hard money lenders in California, China, or anywhere else. They were lower than the banks.
So it was easy to imagine people flocking to Ezubao. If you could get your money faster and for less, why wouldn’t you go to them? Except people were not. Approximately 95 percent of the borrowers Ning claimed the company had were fake. In the process, over 900,000 investors lost $7.6 billion.
Could There Be A Hard Money Lender In California Like Ezubao?
Investors and lenders alike always have to be on the lookout for potential scams. These days they have become more and more elaborate and can be hard to pinpoint. But that is why there are as many regulations as there are for hard money lenders in California and across the country.
Could a scammer get his or her hands on the appropriate licenses to appear legitimate? That is always going to be a possibility, but if ever in doubt, refuse to take their word for it. Call the appropriate local or state agency that issued their license. If you still aren’t sure—go with someone else.
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.
Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.