Frustration with Sherman Bridge (A hard money lender)

[Izu Ariwodo]

I am a new investor. Sherman Bridge lending, a hard money lender was recommended to me by their sister company New western wholesalers.

The loan funding was quick. But the moment I was locked in and started the rehab, it became extremely difficult to receive draw request. Sometimes it takes 2-3 weeks to receive the money. The money is actually mine which Sherman bridge forced me to escrow. 

The delays are actually caused my contractor to slow down the project pace, thus causing me more money on mortgage interest, tax and insurance. Every effort to get Sherman bridge to move faster was ignored.

Finally at the end of the project,  Sherman bridge is ordering a project recertification. The first attempt took two weeks they identified a few issues which we fixed. Then they ordered another recertification. This time its taking Sherman bridge 17 days to come back with a claim that the appraiser is on vacation. 

Meanwhile I have been doing virtually nothing for a little over a month. I am committed to paying a mortgage at the end of this month.

I am wondering if other investors are facing similar problems from hard money lenders. This experience with Sherman Bridge is particularly disheartening. 

I will advise investors to avoid Sherman bridge. 

[Bobbe Erlinger]

Mr. Ariwodo,

I am happy to discuss the challenges that you have experienced, please call my office.  As of last check the repairs that you indicated you would be doing in your renovation budget had not been done but we are working with you to find another solution.  I understand that after closing things had to be changed on your end due to the city subsequently creating the domino effect that we are now dealing with but I can assure you we are doing everything we can to assist. 

Your home was valued when we did the initial loan based on what you told us would be done, as such this is the valuation that we base our loan on. 

When the items the property was appraised with are not done this could, not saying that it does, but could have a negative impact on the overall value of the asset thus changing the situation entirely.  This is the reason we need the recertification of value, nothing more.  Please understand that the changes made after funding of your loan were not a result of any negligence on behalf of Sherman Bridge but I can 100% understand the frustration and would welcome the opportunity to discuss this with you.