11/13/2026
A quick reality check for anyone lending private money or buying promissory notes:
If a sponsor or borrower tells you your mortgage is "being processed by the county" or insists on closing the loan in-house to save you title fees, hit the brakes immediately.
In Northeast Ohio, a promoter recently picked up 70 months in federal prison for raising millions from private lenders. The playbook was simple:
Promise 8% to 12% returns backed by a "first mortgage."
Sign the mortgage paperwork in his office.
Never record the deed with the county fiscal officer.
Turn around and pledge the exact same house to 15 or 20 other unsuspecting lenders.
On one single property bought for $47,000, he took in over $1,000,000 from out-of-state investors who believed they had a clean, first-position lien.
If you are putting money into private notes:
Always close through an independent, insured title company.
Never wire money directly to a borrower’s general operating account.
Demand an ALTA Lender’s Title Policy delivered directly to you.
Look up the parcel on the county recorder’s website yourself before funding second draws.
Paper in a drawer isn’t collateral. If it isn't recorded on the public docket, it doesn't exist.
Disclaimer: This post is for educational and informational purposes only and does not constitute legal, tax, or investment advice. Always verify public records and consult qualified legal and title professionals before lending capital.
