Sherman Bridge Experiences

[Thomas Richter]

Since Sherman Bridge is a Bigger Pockets featured lender, I thought I'd give them a try. I've been talking to them for about a month now. The project is a rehab and I was attracted to their 7.75% hard money loan. So after going back and forth with questions and answers, I have to say I'm cautious.

Not only does it all seem to be "to good to be true" (which it usually is), the oddest thing happened; the day after I finally send in an application and give them all my documents for a property that I opened escrow on, I get a call from the loan officer. He says that the 7.75% is no longer available as of that morning. 

All he can offer now is a 12 month loan at 11.25% (at first he quoted 9.99%) which is a far cry from the 30yr amort 7.75%ARM fixed for 3 with a -2.5% margin.

I feel it's a bit weird that this should happen the day after I submit my application. Apparently their CEO Curt Karlton (or is it Kurt Carlton?) is "in New York negotiating" and the product "might come back". 

Now, I've seen some people review this company and complain about bait and switch tactics, and I'm wondering if that is what's going on here?

Has anyone else experienced this? Has anyone here actually closed one of those 7.75% hard money loans? 

Cheers

Thomas

[Darren Eady]

Most hard money lenders are typically trying to collect a 12% interest rate for their risk and their margin (if the funds are not their own).  Ugly tactic to bait and switch.  Your numbers probably still work at the higher rate, but would you work with a group that would change things on you at application?  I wonder what will change at closing??