Appreciate the response Chris and Jay , and I agree that the 3K up front seems to be at the discretion of the lender versus a required fee. In discussing it with the lender he says that they refund a portion of the 3K, roughly 2.6K of it and the remaining portion was for inspection and appraisal fees once the first deal is approved.
According to Jay's response that is where it is a bit concerning about getting the loan approved to have the portion of funds returned.
Below is an email I received from them this morning:
Again appreciate the response, have a great day .
EMAIL ***************
Great question, Ben… why do we charge $3,000 for access to our Find-Fund-Flip System?
Certainly you’ve already talked to one of my Investment Directors about this, but I wanted to lay it out for you so we’re all on the same page.
First of all, you can boil our system down into 3 big benefits for you:
(1) Find Deeply Discounted Properties – you’ll get the training AND the tools to find properties at fifty cents on the dollar… over and over again. I’m talking about motivated sellers who want to sell you their property. You’ll learn it all.
In fact, our main finding tool comes in the form of a proprietary deal-finding software that new members get access to. Want to see it in action? Click here to see how I find dozens of potential deals in minutes.
(2) Get Deals That Don’t Get You into Trouble – our entire system is designed to keep you from losing money on a deal! We’ll teach you to value properties correctly and give you software to help you crunch the numbers. You’ll get members of our Loans Team assigned specifically to you. Plus, you’ll get access to our lawyer-approved contract templates. All of this to keep you as profitable as possible and away from the nightmare of a bad deal.
(3) Low or No Cash-to-Close Funding – We’ll approve, distribute, and service the loan for you! Nowhere else can you find this level of training & resources from the same company who’ll also give you the capital for the deal.
“Okay, but why the $3,000?”
Back to that, Ben.
We specialize in providing loans to first-time fix & flippers who:
- Don’t have great credit
- Have no experience
- Don’t have a ton of cash on hand
No other hard money lender does that – in fact, others in the industry think we’re crazy that we don’t cater to more experienced investors!
But because we take on those higher-risk borrowers, we require a little skin in the game. It’s our way of making sure that you’re taking this seriously and you’ll do everything in your power to put our money to work on your fix & flip.
Does that make sense?
“But what do other hard money lenders charge?”
Here’s how it works, Ben…
Other hard money lenders require a percentage down of the project costs, plus all the other fees!
That means you’re in it for at least $30,000 just to get your loan!
We realize that’s not feasible for most new investors. We don’t believe you should already be rich to get an opportunity to fix & flip.
So, you pay the $3,000 up front to show us you’re committed to making this work.
Then, when you close your first loan, we'll give you a rebate check for $2,350! Then $650 goes towards the evaluation on that property.
Plus, we specialize in loans with very low cash-to-close… or even ZERO cash-to-close! This is our flagship 100% financing loan, and probably a main reason you started looking into us.
That $3,000 is starting to sound like a pretty good deal now, right?
