All Forum Posts by: Ndy Onyido

Hello BP Nation.

After reading the post with link below:

https://www.biggerpockets.com/forums/517/topics/60645-lender-scams-and-warning-signs-beware-protect-yourself-

I decided to share this experience to ensure no one is being ripped off by this practice:

I met this company through a trusted TK provider I was going to buy a property from.

The lender is a broker by the name Tony O’Brien who works with/for a firm called Summit & Crowne Capital Partners. Apparently he is a broker with this firm. He also runs a company-Real Estate Lender USA with NMLS # 1473497 as indicated on their site. Company claims to do rehab financing, bridge financing etc. However, he uses this company to collect upfront ‘application fee’ of $1,950 with no caveat should the loan not materialize, only a condition that $500 will be credited back at closing.

Now here are my red flags and I wonder if this is a deliberate guise to defraud the unsuspecting public:

1.He insists on collecting this ‘application fee’ of $1,950 upfront.

2.My understanding of brokerage is that the broker is compensated by the principal. I know he is a broker because the documents/forms he sends are from Summit & Crowne Capital Partners and Peak Asset Lending.

3.In fact, other forms , like applicant’s cashflow/statement of net worth etc were from Summit & Crowne for the same transaction, although the pre-approval letter he provided was from Peak Asset Lending ! .

4.This pre-approval for which he charges $1,950 upfront from his realestatelenderusa.com website is available for free on Peak Asset Lending website. (www.peakassetlending.com)

• 5.Even the experienced TK provider who has been in the RE business for decades has not been able to get an approval for any of his clients from this lender.
• 6.Appraisals come in way below market value—the one I paid for on his site was 40% below market and the TK provider was very furious. He said this has been the trend as if it was deliberate to disqualify applicant/transaction.

I need anyone who has successfully done a transaction with this guy to provide me with details of his/her experience. I can disclose the full details of the deals we have attempted to consummate that were all still births.

My primary goal is to make sure no one is taking undue advantage of the public here.

Thanks,

Ndy

@Jason Fike

sure, go ahead.

Thanks

Am not sure it is ethical to side-track the wholesaler.  If you dont have an agreement with him on the price, I will walk away from the deal; No point to burn bridges; deals are everywhere.

My one cent!

Hi all,

I will like to connect with wholesalers in KC MO. Preferred areas include Grandview, Independence, Raytown, Belton and Lee's Summit.

No mls please, only off market.

Let me know what you have.

Thanks

welcome to BP @Steve Johnson

I invest in KC but out of state. 

@Gordon Cuffe let me also know what you have off market.

cheers

Great job, @Account Closed

Congratulations!

@Waylon Gaye

Congratulations on your first major step.

@Account Closed is right. You may email him to walk you through the process of getting a valid and enforcable contract with the seller, then you can assign this to another investor, make a little margin and move on.

Cheers

Great!

Not a bad deal! Although you did not mention the neighborhood.

great was to start the new year!. ..

Congratulations@Gabe Ledo. One quick advice; you will need to be sure of the rehab cost to avoid cost overruns and surprises and aches that come with it. And ensure you have a reliable contractor.

All the best and keep us posted of the progress....

Congratulations @Michael Rogers

Great inspiration and reward for consistency and hard work. Wish you God's best....