Blue Gate Capital - are they legitimate?

[Randee Erickson]

I’ve been getting texts from Blue Gate Capital and was wondering if anyone has had any dealings with them. Are they legit?

[Donnell Weaver]

Wow! They have been all over me lately. I finally gave in and decided to talk to them. They do sound very interesting, but now I have been scared away. Thanks for the comments.

[Tarique Hasheem]

We are all confused about what role a private lender plays, so here is a quick and dirty explanation.

Unlike prime lenders (ex. big national and regional banks like Chase) that underwrite both the borrower's ability to repay the loan and the collateral (ex. real estate), private lenders make lending decisions based on the collateral. 

NMLS does not regulate private lenders. Private lenders are not affiliated with private organizations like the American Association Of Private Lenders, and they all have different risk tolerance. 

Your job as the borrower is to satisfy the lender/underwriter to fund your deal.

Private lenders want to fund deals because they want to put their capital to work. They are in the business of LENDING money BUT, borrowers have to play by their rules.

Otherwise, you can find Chase on the NMLS website BUT good luck funding your deal with them!

[John Phouthack]

Quote from @Stylianos Kalamaras:

I would recommend staying far away from that company. They just cost me a deal, and they are extremely unprofessional and unorganized, I'm not sure. how they are in business. I was supposed to close yesterday and they were asking me for documentation. I actually found out today that the founder of the company Zack had no intentions on funding my deal from about three weeks ago and was stringing my loan along until today. I have docs etc if you are interested in verification and proof that I have dealt with that company.

@Stylianos Kalamaras
yes very unprofessional company. I thought I was the only one who had this issues Blue gate. I experience the poor processing and unprofessional work they do. At the beginning Blue gate said we were good with the loan approval. No problem with borrower, business LLC, and the location of the property. Seriously two appraisals. Almost $1800 for two appraisal. The first one Blue gate said it was a fraud and not my problem. 2nd appraisal came in fine. Toward the end before closing, they gave bunch of excuses like security breach in their company, don't like the file and the property. Really at the last minute before closing. Who operate like this? Pathetic!! Never again with this company. Costing me tons to money and business relationship with other people.

[Serge Lazarev]

This place is a fraud they aren’t even real lenders the are just originators who have everything private labeled. They tell you 8% then charge you 9.35% at closing knowing you won’t leave the closing table. Stay away 

[Laurie Connors]

I am a Real Estate agent in Memphis and I had listing and therefor was representing the seller.   A Real Estate agent made an offer for his client and BlueGate was who wrote the approval letter for the Buyer.  The closing kept being delayed and delayed and to make a long story short, after it was suppose to close and I could get no answers from Blue Gate or this agent.  Bluegate finally sent out a denial letter post dated to the day it was suppose to close.  Very bogus behavior. They wasted over a month of my Sellers time.  They kept telling me the deal was solid and then defaulted after the closing date and post dated the denial letter.  So unprofessional.  STAY AWAY from this co.  No one is running the show.  Just a bunch of kids answering the phone and writing bad commitment letters.  They are not listed with American Association of Private Lenders and have a c- rating with the bbb.  they are also not a member of the bbb.  Not sure how they are still making a dime or allowed to do business.  I was basically lied to through the whole process.