Large up front Due diligence fee's payable to broker or Lender

[Jay Hinrichs]

American Greed had a segment on last night about Remington financial.

bottom line these guys were in business for over a decade made 27 million 10k at a time by charging 10k due diligence fee's  they had all sorts of fake tombstones dropped in papers and publications touting all the funding's and deals they did

One lady went on a mission Hooked up with another person Go a Retired FBI agent involved and after 3 long years of doing exhaustive back ground work calling all these folks who the company said they had placed loans for... Etc etc.

The feds indicted them... at trial is came out that they had successfully funded exactly 3 loans in all of those years...

I personally remember talking to them during the credit freeze looking for A an D financing for a housing sub I wanted to do... I can tell you they were very good at what they did and I got one of their preapprovals next step was there 10k fee... Well being a lender I just am so put off by up front fee's of any kind other than appraisal fee's that I just passed.

The head honcho got 18 YEARS in the big house.. Junior partner 16 YEARS.. and they play the Junior partners whining plea for lessor sentence.

This advance pay for DUE DILIGENCE game has been around for years and years..

Be careful out there... they prey on folks that have a great project or think they do but are in reality NOT bankable... so they lead those folks on and just steal the little money from them in the form of a turn down at the end of the transaction.