Review on Brownstone Global Private Lending LLC

9 Replies

Hey BP members

I have been in touch with Weston from Brownstone Global Private Lending LLC in Danville KY regarding international financing. Rates seem quite low so obviously I'm skeptical. Also when I google not much comes up just his FB page and LinkedIn...

Has anyone heard of them before ? Also his email is @gmail and his attorney is @outlook which is also odd to me as it doesn't incorporate their company name.

Any info would be great that's everyone

I don't know them. 

What I can say is that the name is deceiving, they are not a private money lender, they will be a hard money lender or brokerage, private investors or the source of funds does not define the type of company they are. A private lender is personally known to you and is not in the business of lending. 

The use of the word "private" in lending is pure marketing and is not correct for a lender in the business, the advertising is deceptive in that respect. Many attempt to call themselves private lenders to avoid regulatory matters, that won't work being in the business of lending for anyone. 

Because of that alone, I would avoid dealing with them. If a lender is deceptive in one area they probably are in other areas.  

Be keen on real estate in '16! :)

You need to be creative.

FB and Linkedin is self promotion.

Go the secretary of states site and look up their LLC filing.

The attorney is probably their registrar.

There are numerous sites usually governmental that will indicate whether they have had any scrapes with the law. They also could be new enough that they do not have any track record.

Depending on the State of KY laws check to see what are the regulations concerning lending money.

Ask you contact person for a letter from their bank saying they are in good standing.

You have reason to be concerned.

Why not borrow locally rather than internationally?

If you insist on going internationally then I would spend the money to seek the counsel of a Barrister who has international financial experience.

Also I would contact the international dept. of a bank like Barclay's and get their opinion.

Be wise to take into consideration the exchange rates. Call Barclay's any given day and ask the exchange rate of Aus $ to USA $ and then look for the rate on Google to get an idea of the premium you will have to pay. Also ask your bank what they charge for wire transfer going both ways. Also ask how long a wire transfer would take. Ask your bank if they handle wire transfers directly or are they a corresponding bank. I have had international transfers take 2-3 days.

Ask the proposed lender for a copy of their agreement and a list of all charges they would make.

I agree that there is cause for concern here and I would encourage all manner of due diligence mentioned so far.  I would disagree on part with @Bill Gulley insofar as his position with regard to the use of the term "private" as it relates to bonafide lenders in business.  We are exactly that, for example.  We are a privately held company lending our own money for business purposes.  We do not use the term "private" for marketing purposes or to circumvent any licensing rules and/or regulations.  We lend north of 25 million a month in the states that we have determined are states we see as good investment states.  I would agree with @Bill Gulley in principle that there are a vast  number of people and entities that are not really lenders, that purport to others that they are.  At the end of the day, all caution should be taken to insure that you are dealing with a reputable individual or entity.  Many, many in this arena are nothing more than advance fee scam artists and/or identity theft phishing enterprises.

Respectfully,

Thank you for your advice everyone I'll try and look into the registration of their LLC and request a letter that they are in good standing.

The reason for it is I am living in Australia (Australian resident) which my wife (US citizen) and we are moving to Temecula this year but we may be delayed with our visa. We have entered into lease to buy arrangement with the vendor or a property in Temecula. The lease option is for 2 years. Rather than wait until we get there to establish credit to purchase the home I was looking into what options I would have to finance the property while still living in Australia.

The loan would be USD as someone had asked about conversion rates. We already have a US bank account.

Thank you

Charlie

Thank you I believe they are a similar set up to your firm from what your saying, that is if what he is telling me is correct.

Is there a way I can get in contact with you. Sorry I don't know how to message you through this site in relatively new.

Would like to discuss my situation

Originally posted by @Charlie Fitzgerald :

I agree that there is cause for concern here and I would encourage all manner of due diligence mentioned so far.  I would disagree on part with @Bill Gulley insofar as his position with regard to the use of the term "private" as it relates to bonafide lenders in business.  We are exactly that, for example.  We are a privately held company lending our own money for business purposes.  We do not use the term "private" for marketing purposes or to circumvent any licensing rules and/or regulations.  We lend north of 25 million a month in the states that we have determined are states we see as good investment states.  I would agree with @Bill Gulley in principle that there are a vast  number of people and entities that are not really lenders, that purport to others that they are.  At the end of the day, all caution should be taken to insure that you are dealing with a reputable individual or entity.  Many, many in this arena are nothing more than advance fee scam artists and/or identity theft phishing enterprises.

Respectfully,

Charlie, it comes security and exchange and finance laws of "private" money dealings, exemptions from trade practices between parties that have had prior business dealings, that are known to each other, where they may be related by blood or marriage, where the source of funds is from their own assets and where such lender is not in the business of lending. 

If any lender is in the business of lending, where they advertise or seek to make loans from the public, they are not "private lenders". They will fall into the definition of a lender being in the business, mortgage lender, consumer or commercial lender. The fact that use their own funds or other sources` of funds is irrelevant. 

There is an association of hard money lenders who have advocated using the term of private lender, basically on two aspects, one is advertising and the other was to distance themselves from the image of past hard money lenders of the past who didn't have a stellar reputation in the banking community as purely asset based lenders. 

There are individuals running around saying they are "private lenders" who seek to make loans, they are here on BP too, these street corner types try to use the private money angle to avoid regulatory matters, some have made such claims here n BP as not needing to comply because they use their own money. They are uninformed. 

Compliance using your own money is usually pretty easy, it become more complicated when you use other peoples money or enter into mortgage brokerage activities to fund loans, that includes partnering, using fractional interests of notes among other capital contributors, or hypothication activities to raise capital. 

Private money is not necessarily private lending. :)      

Scam... Thanks gents. Another BP member reached out to me and we did some digging. They have been caught running the same scam in NY a few years ago.

Have a good 2016 !!!!