Legitimate private lenders do not ask for upfront fees for any reason.
Expenses tied to a loan, such as the origination fee, are deducted from the proceeds of the loan at closing. If you are not using a title company and/or if the loan is not being secured by an asset and a deposit or earnest money is required, investors may opt to use an escrow account through a nationally recognized and verifiable banking institution.
If a lender asks you to send loan fees upfront using a wire, moneygram, deposit to a bank account, or any other form of payment, that is a huge red flag! Don't do it! We strongly recommend that you walk away from the deal and report the lender to our team.