Easy Street Capital - Asking to wire transfer a deposit.
Member since 2024 · 5 posts · 7 votes
Easy Street Capital - Asking to wire transfer a deposit.
Most Popular Reply
Matthew CrivelliBusiness Member
Lender · MA · Member since 2021 · 1k+ posts · 1k+ votesYes, Easy Street does this. It's not common among Hard Money / DSCR lenders but it is there policy. Why? I'm not 100% but Easy Street is all over bigger pockets so I'm sure one of them will comment with a lengthy reason why.
Most HM lenders have you pay the appraisal management company directly for the appraisal, outside of that, all other costs are paid at closing.
Freedom Capital Funding, LLC523 Reviews
23 Replies
- 2yMatthew CrivelliBusiness MemberLender · MA · Member since 2021 · 1k+ posts · 1k+ votes
Yes, Easy Street does this. It's not common among Hard Money / DSCR lenders but it is there policy. Why? I'm not 100% but Easy Street is all over bigger pockets so I'm sure one of them will comment with a lengthy reason why.
Most HM lenders have you pay the appraisal management company directly for the appraisal, outside of that, all other costs are paid at closing.
Freedom Capital Funding, LLC523 Reviews - Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes2y
Quote from @Haarden Shah:
Hello,
I am new to real estate investing and decided to go with Easy Street Capital as our lender for the DSCR loan.
They already ran out credit and we went under contract on a property after getting the pre-qualification letter from them.
I also got the Term Sheet from our contact Zach and the last page is asking us to wire transfer $2,500 to their bank account for the deposit.
Is this common for private lenders? I was under the impression that all payments should go through the title company.
This is our first deal so we're still learning the ropes. I appreciate all the help we could get here, thank you!
Yes, they do it on DSCR for appraisal and pass-through fees
- 2yErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Quote from @Haarden Shah:
Hello,
I am new to real estate investing and decided to go with Easy Street Capital as our lender for the DSCR loan.
They already ran out credit and we went under contract on a property after getting the pre-qualification letter from them.
I also got the Term Sheet from our contact Zach and the last page is asking us to wire transfer $2,500 to their bank account for the deposit.
Is this common for private lenders? I was under the impression that all payments should go through the title company.
This is our first deal so we're still learning the ropes. I appreciate all the help we could get here, thank you!
Yes they require a deposit. I don't necessarily like it since it turns off a lot of clients but they are one of the few lenders that require it to move forward. It is also common in commercial loans.
Most DSCR lenders do not require a deposit. The only items you pay for upfront is the appraisal. Everything else is paid at closing.
I guess it protects them from borrower's shopping mid-transaction.
LuxePrivate Investments LLC 572 Reviews - Member since 2024 · 5 posts · 7 votes2y
Quote from @Matthew Crivelli:
Yes, Easy Street does this. It's not common among Hard Money / DSCR lenders but it is there policy. Why? I'm not 100% but Easy Street is all over bigger pockets so I'm sure one of them will comment with a lengthy reason why.
Most HM lenders have you pay the appraisal management company directly for the appraisal, outside of that, all other costs are paid at closing.
Thank you for the information, I was a bit cautious about it initially due to the wire fraud warnings all over the place.
- 2yMatthew CrivelliBusiness MemberLender · MA · Member since 2021 · 1k+ posts · 1k+ votes
Quote from @Haarden Shah:
Quote from @Matthew Crivelli:
Yes, Easy Street does this. It's not common among Hard Money / DSCR lenders but it is there policy. Why? I'm not 100% but Easy Street is all over bigger pockets so I'm sure one of them will comment with a lengthy reason why.
Most HM lenders have you pay the appraisal management company directly for the appraisal, outside of that, all other costs are paid at closing.
Thank you for the information, I was a bit cautious about it initially due to the wire fraud warnings all over the place.
I would ask them if it's refundable if you don't end up closing. (Less the cost of the appraisal)
Freedom Capital Funding, LLC523 Reviews - Member since 2024 · 5 posts · 7 votes2y
Quote from @Erik Estrada:
Quote from @Haarden Shah:
Hello,
I am new to real estate investing and decided to go with Easy Street Capital as our lender for the DSCR loan.
They already ran out credit and we went under contract on a property after getting the pre-qualification letter from them.
I also got the Term Sheet from our contact Zach and the last page is asking us to wire transfer $2,500 to their bank account for the deposit.
Is this common for private lenders? I was under the impression that all payments should go through the title company.
This is our first deal so we're still learning the ropes. I appreciate all the help we could get here, thank you!
Yes they require a deposit. I don't necessarily like it since it turns off a lot of clients but they are one of the few lenders that require it to move forward. It is also common in commercial loans.
Most DSCR lenders do not require a deposit. The only items you pay for upfront is the appraisal. Everything else is paid at closing.
I guess it protects them from borrower's shopping mid-transaction.
Thank you for clarifying that Erik, it made me a bit nervous since wire transfer fraud is fairly common. I will double check with my contact there, but the response that you guys have provided put me at ease.
- Member since 2024 · 5 posts · 7 votes2y
Quote from @Matthew Crivelli:
Quote from @Haarden Shah:
Quote from @Matthew Crivelli:
Yes, Easy Street does this. It's not common among Hard Money / DSCR lenders but it is there policy. Why? I'm not 100% but Easy Street is all over bigger pockets so I'm sure one of them will comment with a lengthy reason why.
Most HM lenders have you pay the appraisal management company directly for the appraisal, outside of that, all other costs are paid at closing.
Thank you for the information, I was a bit cautious about it initially due to the wire fraud warnings all over the place.
I would ask them if it's refundable if you don't end up closing. (Less the cost of the appraisal)
I spoke with them just now and they said that whatever hasn't been paid out will be refundable. So if we don't close, and appraisal hasn't been ordered yet then we get refunded for it.
- 2yJared RineBusiness MemberLender · Sacramento, CA · Member since 2009 · 1k+ posts · 277 votes
@Haarden Shah...as a broker who has closed multiple transactions with ESC on both DSCR + ground up/flip side, it's completely legitimate. I don't care for it, but it's part of their business model and you will be refunded less appraisal cost if they don't close. I will say they have closed on every deal where I had my client wire the deposit, so I'd vouch for them all day long @Jack Tulloch
Jared Rine United Lending Partners53 Reviews - Member since 2024 · 4 posts · 1 vote2y
Don’t do it!!!. They approve a loan, ask for $2,500 and then decide their “terms” have changed and wont give you the loan nor refund your money. They are a really unethical company.
- 2yErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Quote from @Deandra Tomeczko:
Don’t do it!!!. They approve a loan, ask for $2,500 and then decide their “terms” have changed and wont give you the loan nor refund your money. They are a really unethical company.
Update,
On their Signature Wholesale Broker Channel,
There is the ability not to do the deposit to work with them. That's great news
LuxePrivate Investments LLC 572 Reviews - Real Estate Broker · Elmwood Park, IL · Member since 2020 · 55 posts · 32 votes2y
@Haarden Shah
Do not do business with them!! Run!! They ask for the deposit and say its refundable minus $1,000.00 for whatever fees. But they changed their loan metrics and back out of our refi and now have all these made up fees and will not refund our money owed back to us.
Again.. do not use them!! Look for real reviews. They are usually hidden or blocked, like most of their comments on social media. I wonder why..?? They also have an F rating on the BBB website. Not good. I’m surprised Bigger pockets allows this company to advertise to their members. I’m rethinking my membership with them if they send me spam companies who rip us off.
- 2yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Peter Tomeczko:
@Haarden Shah
Do not do business with them!! Run!! They ask for the deposit and say its refundable minus $1,000.00 for whatever fees. But they changed their loan metrics and back out of our refi and now have all these made up fees and will not refund our money owed back to us.
Again.. do not use them!! Look for real reviews. They are usually hidden or blocked, like most of their comments on social media. I wonder why..?? They also have an F rating on the BBB website. Not good. I’m surprised Bigger pockets allows this company to advertise to their members. I’m rethinking my membership with them if they send me spam companies who rip us off.
Peter,, following all your posts on Easy Street on BP which is quite a few.. Can you elaborate why your so upset? when you say they changed their loan metrics .. what exactly does that mean. Did your property not appraise up and they required more down payment ?? did something happen with your financials that required a change in terms.
Or do you feel they just moved the goal post indiscriminately with the idea of keeping your deposit. And I understand you also probably lost EM is that True. And also the costs of your due diligence etc. When you say refi if that is what you were trying to do.. What are the damages other than your deposit.. I think it would help folks to understand a little more about the particulars.PS I dont know the company and have never done business with them.
- Real Estate Broker · Elmwood Park, IL · Member since 2020 · 55 posts · 32 votes2y
@Jay Hinrichs
Here is a quick outline.
They said they did loans as low as $75k and the house needed to appraise for a minimum of $100k.
Based on comps and recent sales I know the property is worth 120-140ish.
They asked for $2,500.00 as their fee up front. Btw total fees would have been around 9k if the loan was ever created at 8% fixed for 30 years. Which I was ok with.
The appraisal came back at $110k which still fits in their guidelines. Then the underwriter started with all these crazy demands of changing LLC stuff which we did. Changing our insurance. Which we did. Fixing some things on the property. Which we did. And back and forth and back and forth for almost two months.
Then we get everything done they asked for waiting on next step I get a call saying. We have some bad news. We changed our metrics on lending and wont loan on that low of a property because we have new higher ups and we no longer will approve your loan. You can continue the process but it will be denied. I was upset but knew there was a chance it could not happen. I said. Ok. Well. Can i get a refund of the $2,500.00 I sent you. I know there are fees you paid like title, inspections and what not so minus those fees which were around $1,000.00. Send us our $1,500.00 back. (In their contract there is a non refundable $1,000.00s). We knew we were not going to get that back. So they owe use $1,500.00 right. Nope. They have a fee for keeping their lights on. So now they will only return $1,000.00. We did some searching and found they do this to lots of people. Move the goal line right at the end. Hit them with fees and return very little of their money.
So now they have had $2,500.00 of our money. Making them money for months. The property we were going to buy with the refi sold. See ya 9 unit. And they know this low amount of money lawyers wont go after so it’s either we take the loss and it is what it is or we fight them about it.
We are speaking with a realestate law firm to see what we can do. If we get other people who they screwed together there could be a bigger case. So at this point I guess stealing $500.00 to keep their lights on is worth all the negative comments and reviews. We have spoken to a few other investors they have done this to but they hide/block all negative comments on social media. Their Facebook account reviews are bought. Just read them. You will see the real ones. The real ones are 50% good to bad. The fake ones are about making 10k on bit coin???
I’m not sure what we will do at this point. Its not a huge loss it’s just annoying and they are stealing peoples money. I may be out $1,500.00 but I don’t want other people to be annoyed/lose their hard earned money like us. Do not trust them. Dig into their “real reviews”. They may have completed other peoples loans fine but this has been our experience with them unfortunately. I really thought we found a good company to work with but I guess it’s back to the drawing board $1,500.00 down and it’s my own fault for not digging into a company more before sending money. If it seems too good to be true, it most likely is.
- 2yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Peter Tomeczko:
@Jay Hinrichs
Here is a quick outline.
They said they did loans as low as $75k and the house needed to appraise for a minimum of $100k.
Based on comps and recent sales I know the property is worth 120-140ish.
They asked for $2,500.00 as their fee up front. Btw total fees would have been around 9k if the loan was ever created at 8% fixed for 30 years. Which I was ok with.
The appraisal came back at $110k which still fits in their guidelines. Then the underwriter started with all these crazy demands of changing LLC stuff which we did. Changing our insurance. Which we did. Fixing some things on the property. Which we did. And back and forth and back and forth for almost two months.
Then we get everything done they asked for waiting on next step I get a call saying. We have some bad news. We changed our metrics on lending and wont loan on that low of a property because we have new higher ups and we no longer will approve your loan. You can continue the process but it will be denied. I was upset but knew there was a chance it could not happen. I said. Ok. Well. Can i get a refund of the $2,500.00 I sent you. I know there are fees you paid like title, inspections and what not so minus those fees which were around $1,000.00. Send us our $1,500.00 back. (In their contract there is a non refundable $1,000.00s). We knew we were not going to get that back. So they owe use $1,500.00 right. Nope. They have a fee for keeping their lights on. So now they will only return $1,000.00. We did some searching and found they do this to lots of people. Move the goal line right at the end. Hit them with fees and return very little of their money.
So now they have had $2,500.00 of our money. Making them money for months. The property we were going to buy with the refi sold. See ya 9 unit. And they know this low amount of money lawyers wont go after so it’s either we take the loss and it is what it is or we fight them about it.
We are speaking with a realestate law firm to see what we can do. If we get other people who they screwed together there could be a bigger case. So at this point I guess stealing $500.00 to keep their lights on is worth all the negative comments and reviews. We have spoken to a few other investors they have done this to but they hide/block all negative comments on social media. Their Facebook account reviews are bought. Just read them. You will see the real ones. The real ones are 50% good to bad. The fake ones are about making 10k on bit coin???
I’m not sure what we will do at this point. Its not a huge loss it’s just annoying and they are stealing peoples money. I may be out $1,500.00 but I don’t want other people to be annoyed/lose their hard earned money like us. Do not trust them. Dig into their “real reviews”. They may have completed other peoples loans fine but this has been our experience with them unfortunately. I really thought we found a good company to work with but I guess it’s back to the drawing board $1,500.00 down and it’s my own fault for not digging into a company more before sending money. If it seems too good to be true, it most likely is.
Watch American Greed episode on Remington financial and indgrid Robinson. different circumstances but kind of same fact pattern..
Bottom line all private and HML ers are free to change the terms at anytime .. they are not regulated federally like conventional lenders. Its up to the public to decide to trust them with an up front deposit or not..
My business is small balance Mid west rust belt funding.. I have done over 3000 of them since 2012 its a specialty niche and as such we charge FAR higher than HML or PML that are 150k and up to stay in bizz especially with overhead you must bring in at least 4 to 5k per file on top of interest rate. thats why small balance loans are so tough.. I have a minimum on most of 5k even if its a 20k funding. But my clients are gaining 20k in profit plus per deal and or equity if they refi to pay me off.. some deals dont work though and I end up being the only one making money it happens occasionally but thats on the borrower to know their market and such. - Member since 2024 · 5 posts · 7 votes2y
Quote from @Peter Tomeczko:
@Jay Hinrichs
Here is a quick outline.
They said they did loans as low as $75k and the house needed to appraise for a minimum of $100k.
Based on comps and recent sales I know the property is worth 120-140ish.
They asked for $2,500.00 as their fee up front. Btw total fees would have been around 9k if the loan was ever created at 8% fixed for 30 years. Which I was ok with.
The appraisal came back at $110k which still fits in their guidelines. Then the underwriter started with all these crazy demands of changing LLC stuff which we did. Changing our insurance. Which we did. Fixing some things on the property. Which we did. And back and forth and back and forth for almost two months.
Then we get everything done they asked for waiting on next step I get a call saying. We have some bad news. We changed our metrics on lending and wont loan on that low of a property because we have new higher ups and we no longer will approve your loan. You can continue the process but it will be denied. I was upset but knew there was a chance it could not happen. I said. Ok. Well. Can i get a refund of the $2,500.00 I sent you. I know there are fees you paid like title, inspections and what not so minus those fees which were around $1,000.00. Send us our $1,500.00 back. (In their contract there is a non refundable $1,000.00s). We knew we were not going to get that back. So they owe use $1,500.00 right. Nope. They have a fee for keeping their lights on. So now they will only return $1,000.00. We did some searching and found they do this to lots of people. Move the goal line right at the end. Hit them with fees and return very little of their money.
So now they have had $2,500.00 of our money. Making them money for months. The property we were going to buy with the refi sold. See ya 9 unit. And they know this low amount of money lawyers wont go after so it’s either we take the loss and it is what it is or we fight them about it.
We are speaking with a realestate law firm to see what we can do. If we get other people who they screwed together there could be a bigger case. So at this point I guess stealing $500.00 to keep their lights on is worth all the negative comments and reviews. We have spoken to a few other investors they have done this to but they hide/block all negative comments on social media. Their Facebook account reviews are bought. Just read them. You will see the real ones. The real ones are 50% good to bad. The fake ones are about making 10k on bit coin???
I’m not sure what we will do at this point. Its not a huge loss it’s just annoying and they are stealing peoples money. I may be out $1,500.00 but I don’t want other people to be annoyed/lose their hard earned money like us. Do not trust them. Dig into their “real reviews”. They may have completed other peoples loans fine but this has been our experience with them unfortunately. I really thought we found a good company to work with but I guess it’s back to the drawing board $1,500.00 down and it’s my own fault for not digging into a company more before sending money. If it seems too good to be true, it most likely is.
Thank you for this write up, however we already closed on our deal with them a month ago. I will say that their policies were quite annoying, but ultimately the deal did end up going through.
For example, they don't do same day funding on closing day. You have to request it and get it approved, and even then they only fund twice a day. Luckily we were able to get approved for same day funding and the sellers got their money later that day.
Another complaint we had was the slowness of their underwriting team. We almost didn't get the CTC on time. My team and our realtor had to be on them constantly in the week of settlement to get the CTC.
They also made silly mistakes like using one of the business partner's home address than the registered business address to send mail to.
Would I use them again? Probably not. Would I use them if they were one of the last options? Maybe.
But with us being so new to the real estate game, I'm glad we were able to learn the lessons we did early on and are able to ask them going forward to any lenders we speak with for future deals. - Real Estate Broker · Elmwood Park, IL · Member since 2020 · 55 posts · 32 votes2y
@Haarden Shah
I’m glad it worked out for you. Best of luck on all your next properties and portfolio growth.
- 2yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Haarden Shah:
Quote from @Peter Tomeczko:
@Jay Hinrichs
Here is a quick outline.
They said they did loans as low as $75k and the house needed to appraise for a minimum of $100k.
Based on comps and recent sales I know the property is worth 120-140ish.
They asked for $2,500.00 as their fee up front. Btw total fees would have been around 9k if the loan was ever created at 8% fixed for 30 years. Which I was ok with.
The appraisal came back at $110k which still fits in their guidelines. Then the underwriter started with all these crazy demands of changing LLC stuff which we did. Changing our insurance. Which we did. Fixing some things on the property. Which we did. And back and forth and back and forth for almost two months.
Then we get everything done they asked for waiting on next step I get a call saying. We have some bad news. We changed our metrics on lending and wont loan on that low of a property because we have new higher ups and we no longer will approve your loan. You can continue the process but it will be denied. I was upset but knew there was a chance it could not happen. I said. Ok. Well. Can i get a refund of the $2,500.00 I sent you. I know there are fees you paid like title, inspections and what not so minus those fees which were around $1,000.00. Send us our $1,500.00 back. (In their contract there is a non refundable $1,000.00s). We knew we were not going to get that back. So they owe use $1,500.00 right. Nope. They have a fee for keeping their lights on. So now they will only return $1,000.00. We did some searching and found they do this to lots of people. Move the goal line right at the end. Hit them with fees and return very little of their money.
So now they have had $2,500.00 of our money. Making them money for months. The property we were going to buy with the refi sold. See ya 9 unit. And they know this low amount of money lawyers wont go after so it’s either we take the loss and it is what it is or we fight them about it.
We are speaking with a realestate law firm to see what we can do. If we get other people who they screwed together there could be a bigger case. So at this point I guess stealing $500.00 to keep their lights on is worth all the negative comments and reviews. We have spoken to a few other investors they have done this to but they hide/block all negative comments on social media. Their Facebook account reviews are bought. Just read them. You will see the real ones. The real ones are 50% good to bad. The fake ones are about making 10k on bit coin???
I’m not sure what we will do at this point. Its not a huge loss it’s just annoying and they are stealing peoples money. I may be out $1,500.00 but I don’t want other people to be annoyed/lose their hard earned money like us. Do not trust them. Dig into their “real reviews”. They may have completed other peoples loans fine but this has been our experience with them unfortunately. I really thought we found a good company to work with but I guess it’s back to the drawing board $1,500.00 down and it’s my own fault for not digging into a company more before sending money. If it seems too good to be true, it most likely is.
Thank you for this write up, however we already closed on our deal with them a month ago. I will say that their policies were quite annoying, but ultimately the deal did end up going through.
For example, they don't do same day funding on closing day. You have to request it and get it approved, and even then they only fund twice a day. Luckily we were able to get approved for same day funding and the sellers got their money later that day.
Another complaint we had was the slowness of their underwriting team. We almost didn't get the CTC on time. My team and our realtor had to be on them constantly in the week of settlement to get the CTC.
They also made silly mistakes like using one of the business partner's home address than the registered business address to send mail to.
Would I use them again? Probably not. Would I use them if they were one of the last options? Maybe.
But with us being so new to the real estate game, I'm glad we were able to learn the lessons we did early on and are able to ask them going forward to any lenders we speak with for future deals.
this is one of the issue you run into with Wet closings the seller wants a check the second they sign.. out here on the West coast lenders wont fund until they have all the docs signed and back to them then they fund the next day and seller gets paid the following day.. it has to do with what the local closings process's that are in place.. I run into this all the time being west coast based by the time i wire out to fund.. it hits the closer at like 4pm and now the seller is sitting there grinding on them wanting a paper check for their proceeds .. out this way nothing is paper check its all wires. - 2yErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
I will agree that their process can be tedious sometimes. But every loan I have submitted with them has closed. Are they a preferred lender? No. But they do have some unique DSCR guidelines especially with STRs and 5-8 Unit DSCR loans. What I do not agree with was the loan terms changing in the middle of the process. That usually does not happen if your interest rate is locked. If it was floating then you would be subject to the guidelines, and rates for the day that it is locked (usually, with most DSCR lenders). It sounds to me that the rep you were working with was looking to push a deal in, in hopes that it would an appraise for more. This happens all the time in this space especially since it's not regulated. The rep will give you a nice LOI only to change terms last minute when you are about to sign. This is usually due to a lack of due diligence of prescreening the deal.
This is why it's important to work with a solid broker. A lot of investors like to go direct in hopes of getting better fees/rates, it may work for a few that are very deep into the lending space, but majority of investors do not have the time to keep up with changing guidelines, loan structures, and making sure the lender is trustworthy. And then they end up with a bad taste and lose trust in the industry.
LuxePrivate Investments LLC 572 Reviews - Member since 2019 · 7k+ posts · 4k+ votes2y
Quote from @Erik Estrada:
Quote from @Haarden Shah:
Hello,
I am new to real estate investing and decided to go with Easy Street Capital as our lender for the DSCR loan.
They already ran out credit and we went under contract on a property after getting the pre-qualification letter from them.
I also got the Term Sheet from our contact Zach and the last page is asking us to wire transfer $2,500 to their bank account for the deposit.
Is this common for private lenders? I was under the impression that all payments should go through the title company.
This is our first deal so we're still learning the ropes. I appreciate all the help we could get here, thank you!
Yes they require a deposit. I don't necessarily like it since it turns off a lot of clients but they are one of the few lenders that require it to move forward. It is also common in commercial loans.
Most DSCR lenders do not require a deposit. The only items you pay for upfront is the appraisal. Everything else is paid at closing.
I guess it protects them from borrower's shopping mid-transaction.
Actually it's good drawback which means they are serious lender/brokers.
But at the same time, they should also give compensation at the end, for example giving credit or such or faster closing. - Member since 2019 · 7k+ posts · 4k+ votes2y
Quote from @Haarden Shah:
Quote from @Erik Estrada:
Quote from @Haarden Shah:
Hello,
I am new to real estate investing and decided to go with Easy Street Capital as our lender for the DSCR loan.
They already ran out credit and we went under contract on a property after getting the pre-qualification letter from them.
I also got the Term Sheet from our contact Zach and the last page is asking us to wire transfer $2,500 to their bank account for the deposit.
Is this common for private lenders? I was under the impression that all payments should go through the title company.
This is our first deal so we're still learning the ropes. I appreciate all the help we could get here, thank you!
Yes they require a deposit. I don't necessarily like it since it turns off a lot of clients but they are one of the few lenders that require it to move forward. It is also common in commercial loans.
Most DSCR lenders do not require a deposit. The only items you pay for upfront is the appraisal. Everything else is paid at closing.
I guess it protects them from borrower's shopping mid-transaction.
Thank you for clarifying that Erik, it made me a bit nervous since wire transfer fraud is fairly common. I will double check with my contact there, but the response that you guys have provided put me at ease.
Always always call them personally to double check the wire instruction.
And if local, just go to their local office. - 2yRobin SimonBusiness MemberLender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
Quote from @Peter Tomeczko:
@Jay Hinrichs
Here is a quick outline.
They said they did loans as low as $75k and the house needed to appraise for a minimum of $100k.
Based on comps and recent sales I know the property is worth 120-140ish.
They asked for $2,500.00 as their fee up front. Btw total fees would have been around 9k if the loan was ever created at 8% fixed for 30 years. Which I was ok with.
The appraisal came back at $110k which still fits in their guidelines. Then the underwriter started with all these crazy demands of changing LLC stuff which we did. Changing our insurance. Which we did. Fixing some things on the property. Which we did. And back and forth and back and forth for almost two months.
Then we get everything done they asked for waiting on next step I get a call saying. We have some bad news. We changed our metrics on lending and wont loan on that low of a property because we have new higher ups and we no longer will approve your loan. You can continue the process but it will be denied. I was upset but knew there was a chance it could not happen. I said. Ok. Well. Can i get a refund of the $2,500.00 I sent you. I know there are fees you paid like title, inspections and what not so minus those fees which were around $1,000.00. Send us our $1,500.00 back. (In their contract there is a non refundable $1,000.00s). We knew we were not going to get that back. So they owe use $1,500.00 right. Nope. They have a fee for keeping their lights on. So now they will only return $1,000.00. We did some searching and found they do this to lots of people. Move the goal line right at the end. Hit them with fees and return very little of their money.
So now they have had $2,500.00 of our money. Making them money for months. The property we were going to buy with the refi sold. See ya 9 unit. And they know this low amount of money lawyers wont go after so it’s either we take the loss and it is what it is or we fight them about it.
We are speaking with a realestate law firm to see what we can do. If we get other people who they screwed together there could be a bigger case. So at this point I guess stealing $500.00 to keep their lights on is worth all the negative comments and reviews. We have spoken to a few other investors they have done this to but they hide/block all negative comments on social media. Their Facebook account reviews are bought. Just read them. You will see the real ones. The real ones are 50% good to bad. The fake ones are about making 10k on bit coin???
I’m not sure what we will do at this point. Its not a huge loss it’s just annoying and they are stealing peoples money. I may be out $1,500.00 but I don’t want other people to be annoyed/lose their hard earned money like us. Do not trust them. Dig into their “real reviews”. They may have completed other peoples loans fine but this has been our experience with them unfortunately. I really thought we found a good company to work with but I guess it’s back to the drawing board $1,500.00 down and it’s my own fault for not digging into a company more before sending money. If it seems too good to be true, it most likely is.
Send us our $1,500.00 back. (In their contract there is a non refundable $1,000.00s). We knew we were not going to get that back. So they owe use $1,500.00 right. Nope. They have a fee for keeping their lights on. So now they will only return $1,000.00. We did some searching and found they do this to lots of people. Move the goal line right at the end. Hit them with fees and return very little of their money.
So now they have had $2,500.00 of our money.
Peter - please stop lying and spreading defamatory information on this site, or we will be forced to pursue legal action against you. You are completely even contradicting yourself above (we refunded you the $1,000 processing fee for the bad experience, then say "we have $2,500 of your money".
The third-party appraisal came in at $110,000 so regardless of if you "know" the property is "worth 120-140ish" , we can not lend based on your opinion and must utilize an independent-third party value. And you do not somehow 'know" our guidelines that the property and valuation is somehow eligible - thats not a all how lending works.
It is also ridiculous that you are claiming somehow that we are "buying facebook reviews" then citing scam bitcoin reviews as fake (why would we buy these spam comment reviews).
Stop embarrassing yourself - and again, if you keep doing this publicly we will be forced to take action
Harpoon Capital514 Reviews - 2yRobin SimonBusiness MemberLender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
Quote from @Carlos Ptriawan:
Quote from @Erik Estrada:
Quote from @Haarden Shah:
Hello,
I am new to real estate investing and decided to go with Easy Street Capital as our lender for the DSCR loan.
They already ran out credit and we went under contract on a property after getting the pre-qualification letter from them.
I also got the Term Sheet from our contact Zach and the last page is asking us to wire transfer $2,500 to their bank account for the deposit.
Is this common for private lenders? I was under the impression that all payments should go through the title company.
This is our first deal so we're still learning the ropes. I appreciate all the help we could get here, thank you!
Yes they require a deposit. I don't necessarily like it since it turns off a lot of clients but they are one of the few lenders that require it to move forward. It is also common in commercial loans.
Most DSCR lenders do not require a deposit. The only items you pay for upfront is the appraisal. Everything else is paid at closing.
I guess it protects them from borrower's shopping mid-transaction.
Actually it's good drawback which means they are serious lender/brokers.
But at the same time, they should also give compensation at the end, for example giving credit or such or faster closing.Yes - all of the pass-through fees are utilized to needed vendors and included and balanced on the final settlement statement.
Harpoon Capital514 Reviews - Member since 2024 · 4 posts · 1 vote2y
Robin,
we have in fact still not been refunded a dime. Currently sending an email to you. Please respond at your earliest convenience as we still have not received a reply from your team. Thank you.
Quote from @Robin Simon:
Quote from @Peter Tomeczko:
@Jay Hinrichs
Here is a quick outline.
They said they did loans as low as $75k and the house needed to appraise for a minimum of $100k.
Based on comps and recent sales I know the property is worth 120-140ish.
They asked for $2,500.00 as their fee up front. Btw total fees would have been around 9k if the loan was ever created at 8% fixed for 30 years. Which I was ok with.
The appraisal came back at $110k which still fits in their guidelines. Then the underwriter started with all these crazy demands of changing LLC stuff which we did. Changing our insurance. Which we did. Fixing some things on the property. Which we did. And back and forth and back and forth for almost two months.
Then we get everything done they asked for waiting on next step I get a call saying. We have some bad news. We changed our metrics on lending and wont loan on that low of a property because we have new higher ups and we no longer will approve your loan. You can continue the process but it will be denied. I was upset but knew there was a chance it could not happen. I said. Ok. Well. Can i get a refund of the $2,500.00 I sent you. I know there are fees you paid like title, inspections and what not so minus those fees which were around $1,000.00. Send us our $1,500.00 back. (In their contract there is a non refundable $1,000.00s). We knew we were not going to get that back. So they owe use $1,500.00 right. Nope. They have a fee for keeping their lights on. So now they will only return $1,000.00. We did some searching and found they do this to lots of people. Move the goal line right at the end. Hit them with fees and return very little of their money.
So now they have had $2,500.00 of our money. Making them money for months. The property we were going to buy with the refi sold. See ya 9 unit. And they know this low amount of money lawyers wont go after so it’s either we take the loss and it is what it is or we fight them about it.
We are speaking with a realestate law firm to see what we can do. If we get other people who they screwed together there could be a bigger case. So at this point I guess stealing $500.00 to keep their lights on is worth all the negative comments and reviews. We have spoken to a few other investors they have done this to but they hide/block all negative comments on social media. Their Facebook account reviews are bought. Just read them. You will see the real ones. The real ones are 50% good to bad. The fake ones are about making 10k on bit coin???
I’m not sure what we will do at this point. Its not a huge loss it’s just annoying and they are stealing peoples money. I may be out $1,500.00 but I don’t want other people to be annoyed/lose their hard earned money like us. Do not trust them. Dig into their “real reviews”. They may have completed other peoples loans fine but this has been our experience with them unfortunately. I really thought we found a good company to work with but I guess it’s back to the drawing board $1,500.00 down and it’s my own fault for not digging into a company more before sending money. If it seems too good to be true, it most likely is.
Send us our $1,500.00 back. (In their contract there is a non refundable $1,000.00s). We knew we were not going to get that back. So they owe use $1,500.00 right. Nope. They have a fee for keeping their lights on. So now they will only return $1,000.00. We did some searching and found they do this to lots of people. Move the goal line right at the end. Hit them with fees and return very little of their money.
So now they have had $2,500.00 of our money.
Peter - please stop lying and spreading defamatory information on this site, or we will be forced to pursue legal action against you. You are completely even contradicting yourself above (we refunded you the $1,000 processing fee for the bad experience, then say "we have $2,500 of your money".
The third-party appraisal came in at $110,000 so regardless of if you "know" the property is "worth 120-140ish" , we can not lend based on your opinion and must utilize an independent-third party value. And you do not somehow 'know" our guidelines that the property and valuation is somehow eligible - thats not a all how lending works.
It is also ridiculous that you are claiming somehow that we are "buying facebook reviews" then citing scam bitcoin reviews as fake (why would we buy these spam comment reviews).
Stop embarrassing yourself - and again, if you keep doing this publicly we will be forced to take action
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