If you’re out looking for Commercial Real Estate Loans and multifamily funding, you’re also being hunted.

Fake brokers and phantom lenders are everywhere, promising fast approvals, 100% financing, or funding terms that sound too good to be true—because they are. For every legitimate source of capital in the market, there are a dozen scammers waiting for the desperate or uninformed borrower to let their guard down. Or waiting to change terms, right before you reach the closing table when you least expect it!

The good news? You don’t have to fall for it. Once you know the red flags and common tricks, you’ll start spotting funding scams from a mile away.

Why Fake Brokers and Lenders Survive

The capital markets have always attracted sharks. Why? Because money is emotional. People under pressure—whether it’s a business owner trying to make payroll or a real estate investor racing toward a closing date—are vulnerable.

Add in the anonymity of the internet, a flood of social media “funding experts,” and the rise of quick-turn digital lending platforms, and you’ve got the perfect storm. Anyone can buy a domain, throw up a slick website with stock images, and call themselves a lender.

Meanwhile, real brokers and lenders have to slog through compliance, underwriting, and regulatory standards. Scammers skip all that. They go straight for your wallet.

The Red Flags: How to Spot a Fake

Not every deal that looks odd is a scam, but certain warning signs show up again and again. Here are the biggest ones:

1. Guaranteed Approvals
No real lender guarantees funding before reviewing your financials. If someone says “you’re already approved” without seeing your credit, tax returns, or property details, it’s fiction.

2. Too-Good-to-Be-True Terms
Watch out for anyone offering:

• 100% financing (rare and usually predatory).

• Weekly repayment schedules (a business cash-flow killer).

• “No collateral, no credit, no problem” loans.

Real capital is priced according to risk. If the terms sound like a dream, they’re usually a nightmare waiting to happen.

3. High Pressure Tactics
“Sign today or lose the deal” is a classic trick. True capital partners give you space and time to review terms.

The Sneaky Tricks Scammers Use

Some scams are obvious. Others are subtle. Here are a few tactics pros use to trick even experienced borrowers:

• Name-Dropping: They claim they’re “affiliated” with big banks or Wall Street funds, but when you dig, there’s no verifiable connection.

• Copycat Websites: Fraudsters clone the look and feel of a legitimate company site—complete with fake testimonials and logos.

• Broker Chains: They pass your deal around through three, four, or even five brokers. By the time it reaches anyone real (if it ever does), your deal is watered down and your private info is in too many hands.

• Fake Proof of Funds: Screenshots of bank accounts or PDF letters that look official but mean nothing.

• Closing Table Swaps: This is the nastiest move. You’ve spent weeks on a deal, and when you finally sit down to close, surprise—new fees, higher points, or last-minute changes show up in the docs. They’re counting on you being too deep in the process to walk away.

Protecting Yourself Before You Borrow

The best defense is preparation. Here’s how to put a moat around your capital and sanity:

1. Verify the Source
Ask for references. Search regulatory databases to see if they are flagged, reported, or blacklisted (like NMLS for mortgage brokers or state licensing boards). If they dodge verification, that’s your answer.

2. Check Their Incentives
Legit brokers earn a commission when your deal closes. They don’t need your upfront money. If they’re pushing for payment before funding, you’re not talking to a real broker—you’re talking to a con artist.

3. Do the Math Yourself
Don’t get blinded by the sales pitch. Run the numbers. Can you realistically handle daily or weekly payments without crippling cash flow? If not, walk.

4. Get a Second Opinion
Before signing, run the term sheet past an attorney, CPA, or trusted broker. Sharks hate daylight. Even one extra set of eyes can save you from signing a predatory loan.

5. Control the Flow of Information
Don’t openly and freely hand over sensitive data (tax returns, SSNs, bank statements) until you’ve verified legitimacy. Once your info is out, you can’t pull it back.

Smart Habits to Stay Scam-Proof

Scammers look for easy prey. If you build disciplined habits, you take yourself off their menu:

• Build Real Relationships Early: Don’t wait until you’re desperate to find capital sources. Start conversations with real lenders and brokers before you need money.

• Keep a Checklist: A personal “funding due diligence” list keeps you from skipping steps under pressure.

• Slow Down: Urgency is a scammer’s best weapon. If you feel rushed, step back.

• Trust Your Gut: If something feels off—even if you can’t explain why—it probably is.

The Closing Table Test

Here’s one final pro tip: Always read the closing documents carefully, even if you think you’ve already agreed on the terms.

Some of the worst scams don’t happen in the pitch—they happen at the finish line. Extra points, inflated legal fees, “miscellaneous” charges—these get slipped in right before you sign.

By then, you’re tired, you’ve spent money on due diligence, and you want the deal done. That’s exactly when they strike. Take your time. Ask questions. And remember: walking away from a bad loan is always cheaper than living with one.

Money moves fast. Scams move faster.

But if you know the red flags, the tricks, and the protections, you can keep your capital safe and your deals clean.

The bottom line: there are no shortcuts in funding. If someone’s promising one, they’re selling a fantasy—or worse, a trap.

Be patient. Be thorough. And if you want funding partners who don’t play games at the closing table, seek out the ones with a track record, transparency, and a reputation they care to protect.

Because in this game, the costliest loan OR DEAL isn’t the one you walk away from. It’s the one you sign without looking closely enough.