Blue Gate Capital - are they legitimate?
Member since 2021 · 8 posts · 5 votes
I’ve been getting texts from Blue Gate Capital and was wondering if anyone has had any dealings with them. Are they legit?
I would recommend staying far away from that company. They just cost me a deal, and they are extremely unprofessional and unorganized, I'm not sure. how they are in business. I was supposed to close yesterday and they were asking me for documentation. I actually found out today that the founder of the company Zack had no intentions on funding my deal from about three weeks ago and was stringing my loan along until today. I have docs etc if you are interested in verification and proof that I have dealt with that company.
Wow! They have been all over me lately. I finally gave in and decided to talk to them. They do sound very interesting, but now I have been scared away. Thanks for the comments.
We are all confused about what role a private lender plays, so here is a quick and dirty explanation.
Unlike prime lenders (ex. big national and regional banks like Chase) that underwrite both the borrower's ability to repay the loan and the collateral (ex. real estate), private lenders make lending decisions based on the collateral.
NMLS does not regulate private lenders. Private lenders are not affiliated with private organizations like the American Association Of Private Lenders, and they all have different risk tolerance.
Your job as the borrower is to satisfy the lender/underwriter to fund your deal.
Private lenders want to fund deals because they want to put their capital to work. They are in the business of LENDING money BUT, borrowers have to play by their rules.
Otherwise, you can find Chase on the NMLS website BUT good luck funding your deal with them!
I would recommend staying far away from that company. They just cost me a deal, and they are extremely unprofessional and unorganized, I'm not sure. how they are in business. I was supposed to close yesterday and they were asking me for documentation. I actually found out today that the founder of the company Zack had no intentions on funding my deal from about three weeks ago and was stringing my loan along until today. I have docs etc if you are interested in verification and proof that I have dealt with that company.
This place is a fraud they aren’t even real lenders the are just originators who have everything private labeled. They tell you 8% then charge you 9.35% at closing knowing you won’t leave the closing table. Stay away
I am a Real Estate agent in Memphis and I had listing and therefor was representing the seller. A Real Estate agent made an offer for his client and BlueGate was who wrote the approval letter for the Buyer. The closing kept being delayed and delayed and to make a long story short, after it was suppose to close and I could get no answers from Blue Gate or this agent. Bluegate finally sent out a denial letter post dated to the day it was suppose to close. Very bogus behavior. They wasted over a month of my Sellers time. They kept telling me the deal was solid and then defaulted after the closing date and post dated the denial letter. So unprofessional. STAY AWAY from this co. No one is running the show. Just a bunch of kids answering the phone and writing bad commitment letters. They are not listed with American Association of Private Lenders and have a c- rating with the bbb. they are also not a member of the bbb. Not sure how they are still making a dime or allowed to do business. I was basically lied to through the whole process.
I would recommend staying far away from that company. They just cost me a deal, and they are extremely unprofessional and unorganized, I'm not sure. how they are in business. I was supposed to close yesterday and they were asking me for documentation. I actually found out today that the founder of the company Zack had no intentions on funding my deal from about three weeks ago and was stringing my loan along until today. I have docs etc if you are interested in verification and proof that I have dealt with that company.
Good afternoon: 1/4/25
This sounds exactly like my closing which was to happen in November, December and yesterday! They keep asking for information that I already sent. The builder of the condo that I was to purchase has been extremely lenient but I may lose my money and this lovely condo.
I am a Real Estate agent in Memphis and I had listing and therefor was representing the seller. A Real Estate agent made an offer for his client and BlueGate was who wrote the approval letter for the Buyer. The closing kept being delayed and delayed and to make a long story short, after it was suppose to close and I could get no answers from Blue Gate or this agent. Bluegate finally sent out a denial letter post dated to the day it was suppose to close. Very bogus behavior. They wasted over a month of my Sellers time. They kept telling me the deal was solid and then defaulted after the closing date and post dated the denial letter. So unprofessional. STAY AWAY from this co. No one is running the show. Just a bunch of kids answering the phone and writing bad commitment letters. They are not listed with American Association of Private Lenders and have a c- rating with the bbb. they are also not a member of the bbb. Not sure how they are still making a dime or allowed to do business. I was basically lied to through the whole process.
Good afternoon,
Sounds like my experience in real time.....
I would recommend staying far away from that company. They just cost me a deal, and they are extremely unprofessional and unorganized, I'm not sure. how they are in business. I was supposed to close yesterday and they were asking me for documentation. I actually found out today that the founder of the company Zack had no intentions on funding my deal from about three weeks ago and was stringing my loan along until today. I have docs etc if you are interested in verification and proof that I have dealt with that company.
Good afternoon,
This also sounds very familiar with what I am going through now!
I've been in the lending industry for 5+ years now both as a loan officer and a broker and a processor, have also done some UW.
Over the years, I have seen how lenders and brokers spend marketing dollars. With todays AI bots like Chat GBT and their competitors, you can draft an email in seconds and then there are lots of affiliate email companies that will blast email, text lists that you compile. I do not like that at all. It can be costly. I know a broker who spends like 20k - 30k per year in buying leads, paying for blast emails, buying lists of names of investors, etc.
I like to meet people on the personal level first, I feel like people are way more responsive if at first I help them by answering questions, or offering advice, provide them with incite, etc.
Most people do not know what they are getting into in those first deals, which is why we hear so many nightmare stories. When emotion and fantasy and ignorance are at the wheel is when you're in for a crazy ride. The more stoic, grounded, and educated you are the smoother the ride.
I guess my point is, I'd be leery of blast marketing emails myself. No reason to have to meet a lender that way.
Issues with Blue Gate Capital continue...
I brought them a $41M broker deal - Commercial, Multi-family, ground-up construction project.
Customer was somewhat unorganized but they continued communicating with the us until the very end. Then...nothing! Complete silence. No email, phone calls...not even a denial.
Thankfully, we have been able to pivot to other lenders that are ableto close the deal but just imagine the time - 8 months of preparing a customer for closing, then have the deal complete ripped from underneath your feet. Stay away from them!