Watch out! They're Crooks!

[Chateau Commercial]

********  POST REMOVED BY POSTER  ***********

CLICK HERE TO SEE WHY

[real estate 001]

  i do have  a question on this . HOW long have you been  in the business? AS well how many times have you given up front money ?? THERE  are far to many loan compines out there who ask no upfront  and roll fees into  the loan !! WHY did  you pay the upfront money ??


 I would hope you have  had some very good deallings ?? THIS would be with other compines??


 ON the other side of the deal  whom would you say is a good company  to deal with  on hard money ??

[Chateau Commercial]

This was the first, and last, time our company pays any "Good Faith Deposit".  Lesson learned.

The other HML's I use are private individuals, not companies.  These people have never given me any problems.  They lend the money, the terms are met, and they get paid back everything they were supposed to. 

I was not the broker working this deal.  I didn't come into it until after the problem was there.  My understanding was that the particulars of this loan is what lead us to PTFP.  Being a farm and because of the details surrounding the situation, there were very few places, people, etc. that would even look at the deal.  PTFP claimed to be one of them.... Hind sight is 20/20.

[real estate 001]

   OKAY !!! I understand this   all the way !!!     WHERE if i can ask do your loan people loan  as in  all 50  states or just some places ??

 AS i come across deals and  some are mine and some are clients . AND some times we just need a little  extra funds for   a year or less  to close up  a deal !! 

[PaulBroni]

I am pretty sure in the state of Georgia they would need to be regulated by the Department of Banking and Finance. Here is a link to a complaint form:

http://dbf.georgia.gov/vgn/images/portal/cit_11783501/67823584DBFComplaintForm.doc

I'd call the company and tell them that you plan to file a complaint.

Next time I am in the city, I'll pop in to the office to see if they are even legit. Are you local? Did you meet anyone here?

[Frontier Investing]

Unfortunately this is a huge problem in the real estate business. Never pay any money up front for anything. Whether its a good faith deposit, due diligence fees or travel fees to verify assets. The problem with a lot of Hard Money lenders is that they are not really lenders, only brokers acting direct lenders having to pitch the loans to direct private investors.

For everyone else this post is for the big loans, I'm not talking about ARV or rehab loans.

The way to spot fake lenders is to look at the points they charge, if they are over inflated high without a third party broker at 5-8 points thats a dead give away. Direct lenders earn the majority of there money from interest payments, not points. In fact what your referring to is indeed one of the newest tricks in the book. A company like Kennedy Funding takes huge due diligence fees while funding 7 percent of those loans. If you haven't done the math Kennedy Funding has a minimum loan amount of one million dollars so for arguments sake lets say they get 50 due diligence commitments each month at 10 percent; 5 million dollars for doing nothing.

The best thing anyone can do is to get a broker who is very experienced with these high output loans so they can spot the red flags. EZloans is one of these brokers on this site.

[Chateau Commercial]

********  POST REMOVED BY POSTER  ***********

CLICK HERE TO SEE WHY

[71tr]

Take advantage of the Georgia court system and file a small claims action against this guy.  Sounds like you have a pretty good case to win a quick judgment.  At least that is a start to recovering your funds (if possible) and a trip to sunny Georgia this time of year might make for a good break. 

[Deal Hunter]

Most of life's investing woes can be avoided with prudent use of ESCROW.

[MsBodley]

That's a damn shame and I hope you guys are successful and throw this crook in jail!  I would definitely file a Small Claims judgment against him/them.  But definitely check out the class action claim.

Eastern Mortgage in NY is another one to steer clear of.  We didn't send them any upfront money (we don't do that) however, after we got accepted offers, we got the runaround from them and ended up having to scrape up the cash to make the deals go through. They are such losers!!  I ALSO AGREE WITH PUTTING THE MONEY IN ESCROW.  Good luck.

[Chateau Commercial]

********  POST REMOVED BY POSTER  ***********

CLICK HERE TO SEE WHY

[Dave T]

Have you contacted the BBB and filed a complaint?  How about a call to your local consumer protection agency?  How about a call to 60 minutes to see if they might be interested in investigating? 

[Foreclosure Negotiator]

anyone know when sweeps week is in Atlanta?

[Chateau Commercial]

********  POST REMOVED BY POSTER  ***********

CLICK HERE TO SEE WHY

[longwork]

You probably already know this, but every LLC and company is required to list their statutory agent with the Secretary of State's office.  The statutory agent is who you serve lawsuits on.  They had to list one to start the business.  If its no good then you may be able to get a default judgment becuase you service of process has a good chance of standing up.