I am under agreement and currently working with several developers to obtain Construction Financing. I have a main Hedge/Pension fund source that I use, the problem is they will not fund project’s less than 15MM. I have several in the 2MM to 12MM with LTC’s ranging from 60 to 90%. I have approached several sources that state they are “direct lending” sources that require hefty up-front non-refundable fees prior to a LOI being issued or conference call being set-up. Companies who will state they are “Direct” their LOI’s state that " they are pleased to advise that there may be financing available for the project and they will have to go through a third party to locate financing" , “But go ahead and wire the non-refundable fee and we’ll get started right away” I have heard so many stories of companies such as these, raking in the hefty up-front fee and in a 2 to 3 weeks receiving a phone call stating " "We’re sorry we could not assist you further your request for financing has been declined by all of our sources but have a nice day” Who are they fooling?
I’ve been in the Real Estate Financing Industry for 18 years, and it bothers me to see how so many companies prey up the unknowledgeable, weak and honest folks who are trying to make a legitimate living. Yes, I do take it personally at times, because I become a part of these people’s lives and there are only a handful of professionals left in this business who truly take pride in their business, themselves, have integrity, and are honest and fair to their clients.
I can tell you many and many of horror stories from Ponzi Schemes to Platform Trading Fraud. So, if you are a honest and fair individual and you can put your money where your mouth is and deliver what you say, without hiding in that dark corner, (like so many do) in this business behind e-mails, text messages, etc. If you can return phone calls and can be verified, then I would like to speak with you further. I am very leery of fast talkers in this business who truly can’t deliver. I guess the good ole’ days of being ethical, honest and fair are far and few between.