Has anyone used Xpressloans911 as a hard money lender?

Question

I want to ensure they're legitimate before sending my client to them. I don't like the fact that they're asking for an upfront "commitment fee" saying it will be credited at closing.

Jeff S. · Answer

You worked your butt off finding a viable property and a lender wants money to show you are committed to them, @Sheree Jones? Shouldn’t it be the other way around? Loyalty is earned, not bought. Lending is an incredibly competitive business and there’s no reason to spend a dime to show you are serious. In this environment, the fact that you even applied should be good enough for any lender. If they want to charge reasonable fees, these would be paid at closing. Whether a scam or not, you should never pay up-front fees. Here’s a link to a long post on this company: https://www.biggerpockets.com/forums/311/topics/849595-hard-money-lender-xpress-loans-911

Jay Hinrichs · Answer

I would not let the bbb drive your thought process to much.. the idea of an advanced commitment fee for vanilla SFR type loans is just not done in the industry other than by companies that make a significant amount of their revenue with turn downs.. and then some ( not saying this company) but some are frankly just criminal enterprises and never make any loans. If your going to engage in finding lenders for clients I strongly urge you to watch the American greed episode on Remington financial its a great deed dive into lenders that charge up front and basically never fund.. And or simply Google Ingrid Robinson American greed and read her website she is the one who exposed Remington and the owners got major jail time.

Megan Walters · Answer

Ladies and Gentlemen! I want everyone to share this post on any social media platforms. The hell with Xpress Loans 911! You all want some tea? Let me spill the tea! After this, I am hoping and praying that Jill Berg and Robert Berg get. the punishment they deserve. This company is a SCAM! Xpress Loans is a mortgage BROKER. They never fund their own deals. Why?? Simply because they don't have the capacity to do that. They don't have funds at all! They have been living off these poor people's commitment fees! That is where they are getting their bread and butter from and their employees' salary(which take note as I've heard is around $4/hour).They will lure you in and make you believe on all their shits! If you are choosing Xpress Loans, you might as well go to LEGIT PRIVATE MONEY LENDERS! Now, if you want 100% financing go to Residential Capital Partners LLC. https://residentialcapitalpart...If you want rolled in fees go to GROUNDFLOOR https://groundfloor.us/Those are the programs that their sales people are selling you. 100% financing and rolled in fees! And amazingly, people will believe that especially new investors who know nothing about private money lending. They advertise 100% financing as if they are funding it themselves. Take note, Residential Capital only charges 1% (or 1 point), NO COMMITMENT FEES! NO UNDERWRITING FEES! Yes, you have heard that right! They only charge 1%, a thousand dollar for their doc preparation fee and thats it! Go to Xpress Loans and you will be paying 3% (or 3 points), $2,995 Underwriting Fee (as if they are the direct lenders) and your commitment fee will NEVER be applied to your closing costs nor you can get a refund. They'll tell you bs like "we used it to buy-down your interest rate or interest reserves". IF they tell you this bs, tell them that you don't care about any of that, they can apply the correct interest rate and reserves without the said "buy-down". LOL. If you want rolled in points, go with Groundfloor. They only charge 2.5% and points will be rolled into the loan.They are sending all of your deals to Groundfloor and Residential Capital. If someone in here has a deal that was closed by Xpress Loans with rolled in fees. Look at your loan package again and you will see Groundfloor in there. The same with 100% financing, you'll clearly see Residential Capital.Lately, they are advertising the Line of Credit Program. They charge people with a commitment fee of $10,000! YES, $10,000! For what? For an effin' piece of paper. Getting you approved for a Line of Credit costs NOTHING! You want Line of Credit?? Go to LimaOne. That is where they are bringing your applications to! They are ad Line of Credit for $1,000,000 and had the clients oay $10,000 commitment fee upfront! The amount will always depend on your liquidity people! Current liquidity x7 will be the amount you'll get approved with! AND IT IS NOT 100% FINANCING!!Don't waste your time and your money dealing with this BROKER! GO DIRECTLY TO LEGIT PRIVATE MONEY LENDERS! They don't have a Loan Committee for Christ's sake! They are changing terms every now and then because they are shopping your deal around!They send those deals to PML like Residential Capital, Groundfloor, ROC, LimaOne, DLP, Finance of America, Cap360 and a lot lot more! And LEGIT PRIVATE MONEY LENDERS will never charge any Commitment Fees upfront. Xpress Loans will tell you otherwise, but do your own research. NOBODY charges CF upfront! BE WISE ENOUGH! If it is too good to be true, it is not true at all! I am hoping that everyone could share this so we can save those future investors who are planning to start their business in real estate. For Xpress Loans 911, Jill Berg and Robert Berg and all of their employees who are willing victims of this SCAM, your day will come!

Megan Walters · Answer

To be fair, okay let us say Xpress Loans 911 can get deals funded BUT they do nothing on their end. They only collect commitment fees and coordinate with the REAL LENDER. It is basically the same process. So why would you go through a broker and pay a hefty amount of commitment fee, when you can go directly to a real lender and pay nothing upfront? First, they will lure you in, giving you a term sheet with the terms that you wanted (cause that is how they can get their commitment fee) then your file will go to their so-called "underwriters and loan openers", these loan openers will collect your documents, these underwriters will send your deals to the REAL LENDERS. And voila! You will be getting a different term that what was presented to you upfront. Probably the same terms that you got from the top lenders you have inquired with. LOL. Then you'll feel helpless cause Xpress Loans will NEVER give you your commitment fee back. NEVER! You are left with no choice cause either you close the deal (with a totally different term from what you signed up for) or walk away, they will never give you back your money. THIS IS THE REALITY OF XPRESS LOANS. I ASK EVERYONE'S HELP TO EXPOSE THEM AND CHASE THEM OFF THE INDUSTRY!

Megan Walters · Answer

If your regular lenders have passed on it, it is not doable and most likely Xpress Loans will just tell you flowery words to lure you in and pay for that commitment fee but your deal would go directly to their trash bin.

Sheree Jones · Answer

The BBB info was confirmation that they never funded the deals and several investors were waiting to get their money back!

Sheree Jones · Answer

Yes I checked after my initial post and they have several complaints on the BBB site.

Jay Hinrichs · Answer

pump an d dump due diligence company.

Sheree Jones · Answer

The challenge is that the commercial properties are in a rural area, which my regular lenders have passed on.

Nick Belsky · Answer

@Sheree JonesThere are plenty of HML that don't require any fees up front. I'd go elsewhere. I hate even thinking to ask my client to front funds just to see a CLA that may not work for them.Cheers!Nick Belsky