All Forum Posts by: Keith W.

Yes. I’ve definitely moved on!

Thanks!

Thanks. Sounds too typical. Create an offer you can’t refuse. Sacrifice a little for the big payday at the end. 

In my case it would’ve been only 5K. How much are you going to spend to try and sue?

@Lola Omishore 🏃🏽🏃🏽🏃🏽

Thanks for the confirmation!

I’m coming to the place I can trust for answers. 

I was either approached or maybe I reached out to a private money lender for their terms which are 90% acquisition, 6% interest and 2 points. As a first time investor, these favorable terms raised a red flag. 

The next thing that concerned me was they   didn’t need to do a pre approval. Just let them  know when I found the deal and then fill out the application. 

After finding the deal, I filled out the application. They never asked about the property, an inspection, how much for rehab, for acquisition, etc. I just put the total figure needed in the amount requested. 

They approved the application, then sent over the contract. Everything looked as I would expect it to except the last red flag that made me fully apply my brakes! 

They wanted me to send $5200 in points and fees in order to process loan. I would receive the loan proceeds wired to my bank account (another red flag) within 48 hours.

I called and asked why can’t I pay the points at closing. His response was this is the closing. Once I send the money for the points, they will wire the money. I asked who is the closing attorney or where is the escrow. 

He indicated that I may not be used to dealing with that type of loan situation and assured me everything is on the up and up. 

I felt I better reach out to my BP people to get some insight on this situation. 

Has anyone been in a scenario where they sent points of other fees as a deposit to get the loan processed? 

Is anyone aware of any scams that may be out there trying to get newbies little bit of change? 

I’m coming to the place I can trust for answers. 

I was either approached or maybe I reached out to a private money lender for their terms which are 90% acquisition, 6% interest and 2 points. As a first time investor, these favorable terms raised a red flag. 

The next thing that concerned me was they   didn’t need to do a pre approval. Just let them  know when I found the deal and then fill out the application. 

After finding the deal, I filled out the application. They never asked about the property, an inspection, how much for rehab, for acquisition, etc. I just put the total figure needed in the amount requested. 

They approved the application, then sent over the contract. Everything looked as I would expect it to except the last red flag that made me fully apply my brakes! 

They wanted me to send $5200 in points and fees in order to process loan. I would receive the loan proceeds wired to my bank account (another red flag) within 48 hours.

I called and asked why can’t I pay the points at closing. His response was this is the closing. Once I send the money for the points, they will wire the money. I asked who is the closing attorney or where is the escrow. 

He indicated that I may not be used to dealing with that type of loan situation and assured me everything is on the up and up. 

I felt I better reach out to my BP people to get some insight on this situation. 

Has anyone been in a scenario where they sent points of other fees as a deposit to get the loan processed? 

Is anyone aware of any scams that may be out there trying to get newbies little bit of change? 

I’m coming to the place I can trust for answers. 

I was either approached or maybe I reached out to a private money lender for their terms which are 90% acquisition, 6% interest and 2 points. As a first time investor, these favorable terms raised a red flag. 

The next thing that concerned me was they   didn’t need to do a pre approval. Just let them  know when I found the deal and then fill out the application. 

After finding the deal, I filled out the application. They never asked about the property, an inspection, how much for rehab, for acquisition, etc. I just put the total figure needed in the amount requested. 

They approved the application, then sent over the contract. Everything looked as I would expect it to except the last red flag that made me fully apply my brakes! 

They wanted me to send $5200 in points and fees in order to process loan. I would receive the loan proceeds wired to my bank account (another red flag) within 48 hours.

I called and asked why can’t I pay the points at closing. His response was this is the closing. Once I send the money for the points, they will wire the money. I asked who is the closing attorney or where is the escrow. 

He indicated that I may not be used to dealing with that type of loan situation and assured me everything is on the up and up. 

I felt I better reach out to my BP people to get some insight on this situation. 

Has anyone been in a scenario where they sent points of other fees as a deposit to get the loan processed? 

Is anyone aware of any scams that may be out there trying to get newbies little bit of change? 

@Nick C. Thanks for the feedback. That’s the direction I’m heading. 

@Josh Wood I don't have a solution but I do feel your pain. I'm trying to get into the game myself and have been rejected on 3 for 3 properties I offered on. (All Bank REO)

An investor/realtor friend of mine mentioned the other day that the banks have their formula and they will just let the property sit there until they get their price. Without regard to what the property looks like. 

I googled this and found that they multiply x .80 of the fair market value then subtract repairs and realtor fees, etc. The issue with this is we're taught to multiply by .70 of FMV then subtract the cost of repairs and of course, their repair estimate will be super low. We need solid comps to start with.

In my case, I think the next property I offer on, I will use their formula and if I see I can still be profitable, I'm going to take the plunge. 

Bottom line is, I suggest trying to find out the formula the bank is using and if it works for you.