Updated about 6 years ago on . Most recent reply
Real Estate Investor
I purchased an investment property using Sherman Bridge hard money loan. I was promised some many different thinkgs than what was actually provided. First, I was told that my downpayment would be 10% of the purchase. When it got close to closing I was informed that I had to bring an additional $35,000 to closing in addition to the $8,000 I had already given to New Western Acquisition (another caution). Now I'm stuck because New Western won't refund the downpayment and Sherman Bridge is forcing me into this Plus 90 Loan (or whatever they call it). Not wanting to lose $8,000 I came up with the downpayment.
The loan closes and I start my rehab. My issues started when Sherman Bridge deducts 10% of every draw. My thinking is I already put enough down to fund the rehab myself so why am I being charged another 10% of my rehab budget. I'm getting close to completing the rehab and I submit my reqest for the final draw. Guess what now they're charging me an additional 2.5% of the of the purchase price for some fee.
I will never used Sherman Bridge ever again. I hope to warn any and all who are looking for hard money to stay way clear of Sherman Bridge. I believe they are a bunch of crooks and will distort/change what they originally sell you.
Please Beware