Money Source of America- Real or Scam?

Mortgage Brokers & Lenders
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Money Source of America- Real or Scam?

Michael Bramante
Boston, MA · Member since 2017 · 7 posts · 2 votes

Hello everyone,

I'm writing to see if anyone has used Money Source of America as their hard money lender. I have been looking through their financing programs and have received a pre-approval for a BRRR property that I am interested in purchasing however the broker that I have been dealing with emails with run-on sentences, poor grammar, and spelling mistakes; this leads me to think that I am dealing with someone who speaks English as their second language.

My question is, does anyone know if Money Source of America is legitimate?

Www.moneysourceofamerica.com

Thanks,

Michael

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
6y

Instead of starting with an unknown company, go to the NETWORK > RECOMMENDED VENDORS in the menu up top. Look for lenders that advertise here on BP and then ask members in the forum to share their experience. You should consider several different lenders to compare rates or terms and find someone you are comfortable with.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y

    Instead of starting with an unknown company, go to the NETWORK > RECOMMENDED VENDORS in the menu up top. Look for lenders that advertise here on BP and then ask members in the forum to share their experience. You should consider several different lenders to compare rates or terms and find someone you are comfortable with.

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  • Odie Ayaga
    Specialist · Delran, NJ · Member since 2016 · 2k+ posts · 951 votes
    6y

    Is there some special or unique program they're offering that other HMLs don't typically offer? Otherwise I'd work with someone with referrals either from here or someone in your network. If you need one let me know.

    2Reply
  • Jeff Plotkin
    Rental Property Investor · New York City, NY · Member since 2018 · 41 posts · 11 votes
    6y

    @Michael Bramante did you ever learn anything more about this lender? I am preapproved with them and they’re offering the best terms I can find. Can’t find any reviews for them though.

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Jeff Plotkin:

    @Michael Bramante did you ever learn anything more about this lender? I am preapproved with them and they’re offering the best terms I can find. Can’t find any reviews for them though.

    from the link above I would not send them any money and i would be very cautious of putting up non refundable EM on the hopes they fund or spending money on due diligence thinking you have a loan.

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  • Jeff Plotkin
    Rental Property Investor · New York City, NY · Member since 2018 · 41 posts · 11 votes
    6y

    @Jay Hinrichs thank you for your input. That is actually the wrong link. Would you mind looking at this one? Interested to hear your thoughts.

    https://www.moneysourceamerica.com

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Jeff Plotkin:

    @Jay Hinrichs thank you for your input. That is actually the wrong link. Would you mind looking at this one? Interested to hear your thoughts.

    https://www.moneysourceamerica...



    the only thing that sticks out to me is that they say they lend in CA  OR  NV.  I know for sure to do 1 to 4 fix and flip loans in those states requires state licenses and NMLS registration.. I would go to NMLSweb and put the name of the company in and see if they are registered as licensed lenders..  its a law you have your license numbers on your websites..  so that would be something I would look into. as well as Sheridan WY is not exactly the hot spot for mortgage banking :)  other items seem ok.. but I have seen legit HML come into OR and lending not knowing they needed a license then get cease and desists.. I know NV is very tough on those who try to lend without licenses.. and in CA you need either a Real Estate broker license a CF or state lenders license with NMLS..  you can pop my name into the NMLS for fun to see how it looks.. myself I am currently inactive but I still am registered.. 
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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Jeff Plotkin:

    @Jay Hinrichs thank you for your input. That is actually the wrong link. Would you mind looking at this one? Interested to hear your thoughts.

    https://www.moneysourceamerica...




    No nmls registration for that name.. and i could not find any thing on Callaway group  there are some Callaway companies in dallas it appeared..
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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Jeff Plotkin:

    @Jay Hinrichs thank you for your input. That is actually the wrong link. Would you mind looking at this one? Interested to hear your thoughts.

    https://www.moneysourceamerica...



    Go to Civic Financial Group.. scroll down to the bottom of their website  See all their licenses prominently displayed this is a for real lender.
    Now some states don't require licenses for Commercial fix and flip loans on 1 to 4 units.. but  as i said  CA NV OR certainly does.. so for that lender to say they lend there is something to check into..
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  • Jeff Plotkin
    Rental Property Investor · New York City, NY · Member since 2018 · 41 posts · 11 votes
    6y
    Originally posted by @Jay Hinrichs:
    Originally posted by @Jeff Plotkin:

    @Jay Hinrichs thank you for your input. That is actually the wrong link. Would you mind looking at this one? Interested to hear your thoughts.

    https://www.moneysourceamerica...



    Go to Civic Financial Group.. scroll down to the bottom of their website  See all their licenses prominently displayed this is a for real lender.
    Now some states don't require licenses for Commercial fix and flip loans on 1 to 4 units.. but  as i said  CA NV OR certainly does.. so for that lender to say they lend there is something to check into..

    Thanks a lot for looking into this. I am looking to do a fix and flip in FL and they approved me for 90% LTV. Most lenders right now won't go that high which is why I am interested, but its hard to determine if they are legitimate. Given that this is in FL, would they still need those licenses you're talking about?

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Jeff Plotkin:
    Originally posted by @Jay Hinrichs:
    Originally posted by @Jeff Plotkin:

    @Jay Hinrichs thank you for your input. That is actually the wrong link. Would you mind looking at this one? Interested to hear your thoughts.

    https://www.moneysourceamerica...



    Go to Civic Financial Group.. scroll down to the bottom of their website  See all their licenses prominently displayed this is a for real lender.
    Now some states don't require licenses for Commercial fix and flip loans on 1 to 4 units.. but  as i said  CA NV OR certainly does.. so for that lender to say they lend there is something to check into..

    Thanks a lot for looking into this. I am looking to do a fix and flip in FL and they approved me for 90% LTV. Most lenders right now won't go that high which is why I am interested, but its hard to determine if they are legitimate. Given that this is in FL, would they still need those licenses you're talking about?

    Look at Lendingone  they are FLA based  see what they have on their website regarding licensure.. 

    and check Lima one  as well. 

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  • Michael Callaway
    Member since 2020 · 2 posts · 0 votes
    6y

    Money Source of America LLC is a marketing arm of Callaway Financial Group a private money group unlike other hard money lenders and Banks for that matter who borrower money to lend real estate. Our funds are privately funded by investors both individual and institutional who are all licensed in the states where needed. Our group funded over 138 million in residential investment property transactions. many can be seen on the website as well as letters from other lending institutions.The Callaway Family has been in the Financial Services business for over 100 years. Our home office is Sheridan Wyoming but have satellite office throughout the US including the one here in Florida Because of Covid most are working via our cloud system from their residences. Hope this clears this up. Happy Investing

    Michael Callaway

    Managing Member

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  • Jerry W.Pro Member
    Moderator
    Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
    6y

    @Michael Callaway, just saying we are legitimate, does not actually make you legitimate.  Perhaps you could look at @Jay Hinrichs post and post things like your license number etc. to show you are in fact licensed.  Having only 1 post does not give the post any legitimacy.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Jerry W.:

    @Michael Callaway, just saying we are legitimate, does not actually make you legitimate.  Perhaps you could look at @Jay Hinrichs post and post things like your license number etc. to show you are in fact licensed.  Having only 1 post does not give the post any legitimacy.

    As we all know I am not a grammar expert either or the best speller etc. but I did have to chuckle with I read Mr. Callaway's response  as the OP commented on bad grammar and spelling..  

    One thing though again that is for certain in the states I mentioned you need licensure.. And I think if you did into it  CA or OR based lending companies are only going to pay networking or referral fee's to licensed MLO or Licensed companies..

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  • Steve Morris
    Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    6y
    Originally posted by @Michael Callaway:

    Money Source of America LLC is a marketing arm of Callaway Financial Group a private money group unlike other hard money lenders and Banks for that matter who borrower money to lend real estate. Our funds are privately funded by investors both individual and institutional who are all licensed in the states where needed. Our group funded over 138 million in residential investment property transactions. many can be seen on the website as well as letters from other lending institutions.The Callaway Family has been in the Financial Services business for over 100 years. Our home office is Sheridan Wyoming but have satellite office throughout the US including the one here in Florida Because of Covid most are working via our cloud system from their residences. Hope this clears this up. Happy Investing

    Michael Callaway

    Managing Member

    OK, am sure you have 1000s of satisfied borrowers.  Can we talk to a few?

    0Reply
  • Michael Bramante
    OP
    Boston, MA · Member since 2017 · 7 posts · 2 votes
    6y
    Originally posted by @Michael Callaway:

    Money Source of America LLC is a marketing arm of Callaway Financial Group a private money group unlike other hard money lenders and Banks for that matter who borrower money to lend real estate. Our funds are privately funded by investors both individual and institutional who are all licensed in the states where needed. Our group funded over 138 million in residential investment property transactions. many can be seen on the website as well as letters from other lending institutions.The Callaway Family has been in the Financial Services business for over 100 years. Our home office is Sheridan Wyoming but have satellite office throughout the US including the one here in Florida Because of Covid most are working via our cloud system from their residences. Hope this clears this up. Happy Investing

    Michael Callaway

    Managing Member

     Thank you Michael for join in on the discussion. As a prospective customer of yours, I really hope you do a good job convincing all of us of your company’s legitimacy. 

    Since your company is providing the best terms for investors, I’m sure you will have many borrowers from this forum. Please provide us with some more information explaining your company, and or, your lending license number.

    Here are a few reasons why I lost faith in your company:

    1. Terrible grammar and run on sentences in term sheets - clearly written by someone with English as a second language.

    2. Countless emails with an agent, called the number and extension for agent, agent answers and has no recollection of any previous communication. Agent stated “it’s because we do the most hard money loans than any other company”; however every time I’ve talked with a Quicken loans agent they’ve always remembered our previous communications. Quicken loans is responsible for 9% of all loans closed in the U.S; they are much larger of a company than yours.

    3. Called another agent and they did not know anything about your products. Agent simply told me to go to the website and see what you offer. I called because I needed more details about the transaction, how the draws work, etc.



    Mr. Callaway, please shed some light on this topic as you may have a large amount of borrowers on this site. 

    All the best,

    Michael Bramante

    0Reply
  • Michael Bramante
    OP
    Boston, MA · Member since 2017 · 7 posts · 2 votes
    6y

    Hello,

    @Jeff Plotkin did you end up finding another lender or going with Money Source of America? Very interested to know if anyone has used them as a lender.

    Thanks,

    Michael

    0Reply
  • Jeff Plotkin
    Rental Property Investor · New York City, NY · Member since 2018 · 41 posts · 11 votes
    6y

    @Michael Bramante I got a term sheet from them but it was filled with grammar errors and run ons like you said. I was able to call and speak to Michael Calloway himself but after asking him a couple questions he quickly lost patience with me. He said every second he spends talking to me he is missing out on stock market trades lol.

    I asked him why there was no NMLS ID and he spoke for a while about the history of the company and where the money comes from and that he doesn’t have time to deal with people like me. I did not move forward with them lol

    2Reply
  • DeRail McNair
    Oceanside, CA · Member since 2016 · 1 post · 1 vote
    4y
    Quote from @Michael Bramante:

    Hello everyone,

    I'm writing to see if anyone has used Money Source of America as their hard money lender. I have been looking through their financing programs and have received a pre-approval for a BRRR property that I am interested in purchasing however the broker that I have been dealing with emails with run-on sentences, poor grammar, and spelling mistakes; this leads me to think that I am dealing with someone who speaks English as their second language.

    My question is, does anyone know if Money Source of America is legitimate?

    Www.moneysourceofamerica.com

    Thanks,

    Michael

     Hello everyone I actually closed 4 loans with this company From Jan 2022 to April 2022. I found they were slow, many of my closings were late. I lost one deal because they were very late. I was in the process of closing a deal last month. They were behind again, when I called they had a lot of excuses why they couldn't close. To make a long story short I had to dump them and finance another way. I believe they are having finance problems since the interest rates have gone up. I would stay clear of this company, for now

    1Reply
  • Divi Harris
    Investor · Washington, DC · Member since 2015 · 5 posts · 2 votes
    4y

    I received a term sheet from Mr.Calloway recently- no grammatical errors or run on sentences. Like others have mentioned, excellent terms that dont seem available elsewhere. Specifically rolling all your payments into the loan which is what I used to do some years ago with hard money but seems to have vanished. The way their loans are structured allows for financing more projects simultaneously so I'm definitely going to check them out and will report back. If they can actually match the term sheet I received, I'm ok with having to delay closing a bit, well worth it.

    0Reply
  • Divi Harris
    Investor · Washington, DC · Member since 2015 · 5 posts · 2 votes
    3y

    Update- am in process of closing on a fix/flip- so far I will say Michael Calloway is excellent and if things continue smoothly thru closing I would give him and his company 5 stars while planning on using them for all my future lending. He gets it, understands how to structure deals in a changing market with rising rates and more Buyer funds required. If you know what you are doing, this is the lender for you. Will come back to update after we close. 

    0Reply
  • Divi Harris
    Investor · Washington, DC · Member since 2015 · 5 posts · 2 votes
    3y

    I'm not sure if anyone is reading this so I will post elsewhere too, but to followup, I have nothing but great things to say about Michael Calloway and MoneySource of America. The notion posited above they are a "scam" is utterly preposterous. I suspect if you are brand new to hard money lending and doing rehabs you may need more hand holding than you might find at Money Source. However if you are even a mildy experienced investor you should find that Michael Calloway is the lender you have been looking for, he knows the industry and how deals right now need to be structured so everyone can make money and bring the least amount possible to the transaction. This is critical if you want to do multiple projects but dont have the cash on hand to sink 20% into every single deal. Yes they are a little expensive as far as points but it's well worth it when you consider in this lending environment there is still an outfit that can allow for you to have multiple projects up and running without having to show $1,000,000 cash on hand like most all other lenders would want to see right now. 

    My total loan on this project was over $1mill which calls for some additional underwriting steps these days, Michael handled all of it quickly and efficiently, was always immediately responsive to my inquiries and quite frankly as it turns out I really didnt need to contact him- he was on everything, I was just being diligent as I'd never used this lender before. I've been full-time developer for going on 15 years now and can give Michael and his team an A+ rating, will be using them for all my projects moving forward.


    Anyone feel free to message with questions and I'll be posting this elsewhere as more people on this forum should be using MoneySource if they are not already.

    0Reply
  • Marshall Davis IV
    New to Real Estate · Chicago · Member since 2023 · 3 posts · 0 votes
    3y
    Quote from @Divi Harris:

    I received a term sheet from Mr.Calloway recently- no grammatical errors or run on sentences. Like others have mentioned, excellent terms that dont seem available elsewhere. Specifically rolling all your payments into the loan which is what I used to do some years ago with hard money but seems to have vanished. The way their loans are structured allows for financing more projects simultaneously so I'm definitely going to check them out and will report back. If they can actually match the term sheet I received, I'm ok with having to delay closing a bit, well worth it.


     Divi! Are you able to speak to how your experience went with them?

    0Reply
  • Bozena Waters
    Member since 2023 · 1 post · 0 votes
    3y

    Hello,

    I am a seasoned real estate broker/investor with 17 flips up to date completed, working currently on the 18th, 2 buy and holds sold within 5 years of acquisition, ground up, additions and etc. I submitted 2 deals last week, solid ones with appraisals available and so on. Well, I have not heard back yet and it has been about 5 business days by now. I also e-mail to e-mail provided, called, but no one ever picks up a phone there. At this point I can  not say if they are legit or just that busy or may be do not have enough agents working to make things faster. Whatever reason is, I am still to get a respond. This is my experience so far. Thanks, Bozena Waters

    0Reply
  • Divi Harris
    Investor · Washington, DC · Member since 2015 · 5 posts · 2 votes
    3y
    Quote from @Marshall Davis IV:
    Quote from @Divi Harris:

    I received a term sheet from Mr.Calloway recently- no grammatical errors or run on sentences. Like others have mentioned, excellent terms that dont seem available elsewhere. Specifically rolling all your payments into the loan which is what I used to do some years ago with hard money but seems to have vanished. The way their loans are structured allows for financing more projects simultaneously so I'm definitely going to check them out and will report back. If they can actually match the term sheet I received, I'm ok with having to delay closing a bit, well worth it.


     Divi! Are you able to speak to how your experience went with them?


     I cant speak to anyone else's experience but my deal closed when I wanted it to and smoothly. As is often the case the loan was immediately sold to another company in my local area and I did have some hiccups there as far as how the draw schedule would work but that is an issue with the servicer not the initial loan. I plan to use MoneySource again on another project once permitting is complete on my current one- permits are a hangup in DC!

    0Reply
  • Bob Thompson
    Member since 2023 · 1 post · 0 votes
    3y

    Good Evening My firm and I have a closed over 5 million dollars in residental investment property loans over the years with Money Source and America and highly recommend this firm. If they do not respond you may have look at your deal. If it is good deal they will issue a term sheet. They do what they say and do everything they can do to close a good common sense loan. They are real private money, which most do not know or understand and terms that no one else has in the business has.   They are legit and The Callaway Family has very good reputation in the finance business for over 100 years and if you visit their website  you just may learn something very informative. Thanks Money Source Team keep up the good work Bob Thompson CMC Builders.

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