Anyone done business with Jon Woolner of Fortune Mortgage Company

Has anyone ever done business with Jon Woolner of Fortune Mortgage Company?
I spoke to him about a line of credit for my business, but was wondering if anyone else on this oard has done business with him.

Thanks,

I’m not familiar with him what type of line are you requesting? Is it for commercial property and maybe a cashout refi?

I was considering using him for a business line of credit.

sorry not familiar with him or his company, you may want to check with your local banker on a line of credit if you haven’t already

I spoke with Jon several times about the busines lines. He e-mailed me several peopleHe said had done loans through his company. I’m holding off it makes my wife a littlt nervous to send 6k to a stranger. :-X

Hello Folks,

Here are some thoughts:

  1. Credit lines come in many varieties. Before I paid anyone for anything I would be sure of what was being offered. The line that you probably want is the small unsecured business line of credit and you would prefer to have a limite of $50K to $100K. Some lines are structured like credit cards and have lower limits. You may not need a broker to help with these, try contacting Capital One, AMEX, Chase. Most banks will have both types of lines. Capital One is easier on more challenging credit. We do not see many large, unsecured lines going to folks that are credit challenged.

  2. Upfront fees are something of another subject. Our thoughts from a business side,and my personal thought, is that it is nice to have expenses covered for processing an application but to ask for a fee with no exchange of value to the consumer is not fair to the consumer. We see fees ranging from 3% to 10% on lines depending on the broker and the area. It will also depend on the type of line as some folks with poor credit may find value in paying 10% for a small revolving line. To pay such a fee without seeing a result just does not seem right. I do not think you should pay for anything that you are not receiving (and I emphasize the word receive) an equivalent value back. I do not see any value coming back paying an upfront fee other than the promise of delivery. I agree with jayslim29’s wife and appreciate that nervousness has kept you from sending in $6K to someone you never worked with before on something you do not know what you will be getting. Here is a simple question: When doing a residential loan does the broker you work with ever ask for the entire fee upfront or is the bulk of it due when the loan closes? Why is it not working that way on this? After all, the broker is not going to be ordering anything like appraisals or title where a third party will be out fees if the deal falls through. Why the entire fee up front? I can tell you that the amount of work in process a credit line request is much less than that on a residential loan. I can understand charging an upfront fee to cover expenses but paying a broker’s earnings without them performing seems to be something to warrant nervousness.

Lets examine a few reasons why someone wants all fees upfront.

First, there is a chance you will pay it and never hear from the broker again. We have all heard enough stories to know that there are folks in this business that set up to take fees and disappear. Though most folks in the business are not like this, there are enough to teach us to be very cautious.

Second, getting paid today for something to be delivere tomorrow seems to protect the broker. It does not seem to put much merit on you or your business. It seems a matter of trust and the broker is saying: “Pay me now and trust me to deliver.” Why are they not saying: “cover my costs, I will deliver, and I will trust you to pay”. After all, they probably have a fee agreement they will want you to sign. Why is this not enought for them to trust you? I once worked on an opion on the top ten things that create a strong customer service environment. One of the key points was trust. When you pay upfront fees like this it seems to me that you are the one putting your trust in the broker but I do not see where he is putting his trust in you. Will you ever be comfortable when the transaction starts with a statement of mistrust? Collecting the Fees upfront make sure the broker has his before you get yours.

Third, by paying upfront the broker is protected. Once your info is released to the lenders/bankers, they no longer have control and you become a lender or bank customer at that point. Yes, it is true that many clients will use brokers to find the source and then go around them. But, it is not necessary to treat everyone like this. In addition, if the broker’s fee agreement is worded properly, it should protect him from a client that circumvents.

Fourth, I think by paying the fee up front like this the broker is more focused on what makes his business succeed rather than yours. In all defense, business is business, but it seems asking for the entire fee upfront rather than upon finalizing the credit line, seems to emphasize their need rather than yours.

Here is an example of a problem that comes up every now and then:

Often, when these lines are linked to checking accounts (which is common), there is some type of administrative mistake. Nothing big, it is easily corrected, but an error all the same. When most folks find out about it is when the check is written but no funds are available, the chekcing account is overdrawn because the transfer from the line was never executed, and that real estate deal that was to take place today has to be delayed. The borrower usually finds this out when they are about to conduct their first transaction on the line. Needless to say, writing a check only to have it come up a problem becasue something was not linked is a true embarassment and can lose a good deal for you. When this happens, is the broker that collected the 6% going to correct it? Does the broker have any way in their process of keeping this from happening? Will the broker even care? Chances are it will become your problem and the lender’s/bank’s problem to solve. Maybe a better process is that the fee is paid to the broker at the end of the process and their check is the first one through to make sure it is linked and you are left with a working, problem free tool ready to help your business. And, maybe if this is not done, the broker should not get paid till it is completed.
It is only fair that you pay when you receive an equivalent value in return.

These are just some of our thoughts on this. We have placed many lines for an assortment of clients and businesses but to date have never asked for our fee to be paid upfront. We do not ask for several basic reasons: Not all requests are successful and fees should be paid based on results. Not all folks can be trusted but most are honest and should not have to work inside processes designed for protection from the dishonest folks. Most people have plenty to worry about without adding prepaid fees to the list. By being more relaxed about the process, we find a more genuine and friendly atmoshpere emerges that helps bring the focus on the client’s need and the proper solution for that need It is not about finding a credit line as much as forming and forging long term business relationships, both with lenders, banks and brokers. And, perhaps the top reason why we do not collect up front fees for credit lines is that we would not pay an upfront fee for one. It is hard to ask someone to do something you yourself would not do.

I hope this helps. Sorry for the long posting and the mistyped words.

In regards to sending anyone money beforehand for any type of loan (conventional, private lender, or hard money) that is over and above a basic application fee, credit check, appraisal fee, or inspection, I flat out would not do it. Please refer to my post a little while ago where I sent $1500 to a crook that never provided a loan and refused a refund of his so called consultation fees.

http://www.reiclub.com/forums/index.php?board=26;action=display;threadid=11545

Now Jon may be a fantastic guy and may be providing a great service. I just do not go along with his business plan.

I would have to concur with everyone else. I have never asked, nor would I expect a client to send money in advance. I would be a little wary and do a little more research. Good Luck!

We honest loan officers usually prove our merit by accepting payment on delivery (we don’t get paid til you get your loan done). This means we work for free half of the time, but my borrowers are always safeguarded from the upfront fee scam.