There are creatures that prowl about the lush, green hard money jungle that ignorantly kill 99 out of 100 deals...and the chances of you ever finding a real lender with them are slim and none.

Now I'm not talking about respectable brokers, agents or middlemen that have direct access to the money and treat their clients with respect. I'm referring to the ignorant leech who has absolutely no connection to a real investor at all, and leads the innocent, sometimes desperate client into a black hole of false hope.

They are despicable, not because they don't want to secure funding for their client, but because they don't know the first thing about the real world of private lending... They are in it for the hope of big broker fees and don't really care about the myriad of candidates vying for funding!

They don't give a flying squirrel about the client, their particular circumstances or the massive amount of time that will be wasted. They set their hook and then proceed to drag their unsuspecting prey into a daisy-chain jungle, hoping that someway, somehow, someone they find will fund the deal (throw enough wet spaghetti against the wall and something eventually has got to stick mentality).

This jungle leech calls every person he can find, other leeches, quasi-brokers and the like, hoping that someone will know someone who knows someone's rich brother-in-law. This fishing can take days and sometimes weeks, and, if they ever get lucky enough to find an interested party, they simply sit back and pacify the unsuspecting client as long as they can until they find a way to the cash. Now, if the interested party is another leech (and 99% of the time they are) you can see how this daisy-chain can quickly grow into an anchor that drags the deal into the shadows of the jungle.

Many deals never get funded because there are too many hands in the cookie jar..."a plethora of parasites" if you will. If one leech senses he won't get his cut of the profits, he can and usually does, kill the deal so NO ONE gets paid. And the sad thing is, a real hard money lender doesn't go near a deal that's been picked over.

It doesn't have to be this way. There are simple indicators you can learn to help you deal directly with the real private money lender. If you follow these basic rules, you will save yourself considerable time, frustration and heartache.

Rule No.1- If they ask for an upfront fee, laugh, scream "leech" into the receiver and hang-up the phone! Who knows, maybe you'll freak one out and he'll change professions.

Rule No. 2- Real hard money or private money lenders know EXACTLY what they are looking for and will tell you (always during the first phone call) if your deal fits their criteria. If the agent or broker is not sure, staggers a bit and has to check, again, hang-up the phone!

Rule No. 3- Don't throw out your deal for everyone to look at. Go at it one investor at a time. Remember, real lenders know when a deal has been handed around...picked over deals are already dead! They won't even look at them.

Rule No. 4- Do a web search on the company, group or individual to see if there is any derogatory information floating around about them. If you don't find anything at all that's OK. There are only a handful of real investors in every area and they generally are very private individuals or small groups.

Rule No. 5- Try to deal with someone local if you can. It's easier to check them out and get a good read on them.

Rule No. 6- Most genuine private investors and their representatives are pretty laid back. It's the over exuberant or hyper individual I would stay away from.

Rule No. 7- With bigger deals, like commercial developments, know what documentation you need to get together for your package by checking with your financial advisor or banker.

I sincerely hope this article helps you in your quest to find a real lender who can fund your deal and avoid the hard money jungle altogether! Why not just take the easy route and visit me? That's what I do!