Stay away from these predators. I was to get a rehab loan through these people, and just before closing they decided to change the terms.
The original agreement was 11.99% interest, 4 points, and cross collateral on one other property.
They changed it to two mortgages, one on the purchase, and the other (it would be a second) on the collateral property. Points on each, and closing costs for each and now a 1% commitment fee.
Of course they did this four days before the closing deadline making it impossible to get another loan lined up. That’s called greedy my friends, and had nothing to do with my credit score (over 700) or the property values. The collateral value is 550K with only a 135K first on it. The purchase property at just the purchase price was at 45%.
What they do is unethical and unprofessional. Just wanted to warn all other investors.
“money consultants”…that a new term for me. sounds like an attempt to side-step state licensing requirement for lending. I bet some officials in your state gov’t would be REAL interested to leanr abotu these folk’s “business”
A consultant is one to whom you give your watch and then pay him a high hourly rate to tell you what time it is.
I used to be a consultant (software). There is some truth to that saying.
Unless the “consultant” is loaning out their own money, or is a W2 employee of a licensed broker, they better be a licensed broker here in FL.
It sounds like you just need to do some more money shopping.
Is your deal in Florida? If so, I may be able to put you in touch with a couple of sources I’ve used that should be able to beat what you’ve been quoted. Of course, it always depends on how you’re structuring the deal, how much documentation you’re providing, your credit worthiness, etc.
I do apologize for that misrepresentation of the consultant you were dealing with. It sounds like they were not up to par on their job description, which is to get you the best loan and terms to fit your situation. I promise you we are all not like that.
Misinterpretation is a joke. The guy knew exactly what he was doing. He just got greedy and wanted to close two loans on two different properties to fund the one property. We understood each other perfectly. He just didn’t think I would tell him to take a hike.
I am not saying everyone is like that, but I would definitely stay away from Money Consultants. Period.
With good credit like yours, you should be able to get a loan at a small local bank for much less. Next time, go see a bank and cut out the middle man and all the associated expenses. I often borrow 100% of the purchase price plus repair money and pay about 7% with no points. The only fee is a $500 loan origination fee.
In my opinion, if you have very good or great credit - go to the bank. If you have marginal credit - go see a mortgage broker. If you’re down and out - only then use hard money. Why pay high interest and high fees if you don’t have to?
