McMann Commercial Lending

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McMann Commercial Lending

Rental Property Investor · Los Gatos, CA · Member since 2017 · 124 posts · 131 votes

Has anyone had any experience using McMann Commercial Lending. Currently looking at potentially using them for a $2m loan/beloc on an 8 unit building. Any insight would be helpful. Thanks.

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Nicholas Virthe

Member since 2023 · 6 posts · 5 votes

I’m going through the same story. 180 days today and still nothing. I asked numerous times the name of the bank who’s supposedly issuing this loan, I asked for the name and contact info of their attorneys, I asked to see the beloc application with the bank…. Never would they provide me anything. They are always on a conference call and never have a update when it will funds. Multiple times they gave me a funding date but it never happened. They also promised me a bridge loan since the beloc is late but the bridge loan also never happened. They gave me a fake testimonial letter from supposedly someone who got funded by a beloc …. We called and it was someone who got a unsecured line of credit and not a beloc of $19MM. Now they are telling me that the bank in UK is illegally holding the funds. I asked again to speak with the attorneys but they refused again. Now I will try to get my deposit back. I will definitely go after them… this is a scam and I have hundreds of text messages and emails where they lied to me and they put me in a ton of troubles. Here is a screenshot of the last time my loan officer said the beloc was funding (March 7th) and obviously it did not happen and now they telling me again they don’t know when it’s gonna happen …

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Robin SimonBusiness Member
Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
3y
their website seems a little sloppy for a national lender. For example, their latest post is dated from March 2020..https://mcmanncommerciallendin...
[email protected]
Harpoon Capital514 Reviews
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Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
3y
Quote from @Bobby Nilsen:
Has anyone had any experience using McMann Commercial Lending. Currently looking at potentially using them for a $2m loan/beloc on an 8 unit building. Any insight would be helpful. Thanks.

Hey bobby,
What are the terms looking like on this loan? If you have your doubts, I would recommend working with a reputable mortgage broker, to see if they can help you find a similar or better option.
[email protected]818-269-7983
LuxePrivate Investments LLC 572 Reviews
Website View Page
0 Reply
Jonathan Taylor
Lender · Los Angeles, CA · Member since 2017 · 916 posts · 647 votes
3y
@Bobby Nilsen I haven't dealt with them as a broker. What terms are you looking for and/or what terms have you been quoted? If you post here we can help with questions to ask and if the deal is competitive or not.
Happy to answer your questions as well.
0 Reply
Simmy AhluwaliaPro Member
Lender · Atlanta, GA · Member since 2015 · 1k+ posts · 200 votes
3y
I'd be very cautious about any group offering a $2M HELOC. Pretty sure that doesn't exist for an 8-unit property. We offer 30 year fixed on 8-units.
2 Reply
Adam Bartling
Lender · Rosenberg, TX · Member since 2022 · 287 posts · 130 votes
3y
@Bobby Nilsen there are a lot of Pros and Sponsors here that are easy to find.
0 Reply
Matthew Sawicki
Realtor · Minneapolis, MN · Member since 2016 · 1 post · 3 votes
3y
I do franchise financing and have run into this group with their BELOC - it’s claimed to be 10yrs IO full term low rate and they finance 100% of project.

High costs - $7,800 due dilligence fee at time of application submission that is non-refundable. Then min of 6% in costs.

Borrower needs to put up 10% of the total loan into a Interest reserve account after loan approval but prior to closing and funding of the loan.

So broken down looks like -

$2,000,000 loan

$120,000 fees

$200,000 IO reserve needed prior to funding.

They then fund in two tranches - 1st tranche is 20% of loan ask - $400,000 (they take fees out of this) so net is $280,000.

2nd tranche is remaining 80% or $1.6M in this case.

I have client that tried to use them and they will not give us referrals of past clients to talk to and they can not say when any of their loans have funded. They claim they fund $30M weekly but when pressed to answer if they funded any clients they keep saying we don’t know who gets funded and will check.

Very likely a scam or very poorly run, either way be careful.

3 Reply
Neil Hoffner
Member since 2023 · 3 posts · 4 votes
3y
I have had significant issues with McMann Lending on a BELOC.
I went with them as they were referred to me by a preferred lending group in Sept 2022. I paid the $7.8k application fee for a BELOC loan for $5M, 4.0% fixed for 10 years, with 10% downpayment going to escrow that auto pays interest. As indicated earlier the loan is funding in 2 Tranches.
Tranche 1 - 20% of the loan amount awarded within 75 days, 6% fees taken out of the entire loan amount. Thus, 14% of the loan amount is available for deposit.
Tranche 2 - 80% of the loan amount awarded within 75 days of the first Tranche deposit.
After 140 days since I made the escrow deposit of 10% of the loan amount, and threatening to cancel the loan, I was told the first tranche was available. I did not take it as the funding of the 2nd tranche was unpredictable and it would be extremely difficult to find another bank willing to take me if the 2nd tranche never came. It has been extremely difficult to get a hold of someone who is accountable. No one picks up the website phone, no one calls back except for the loan officer I was working with who gets me nowhere after very delayed responses and answering most questions with apologies.
I canceled my loan (send a notary via FEDEX, UPS, certified mail, and email). I was told I need to go through their portal to start it, and I did. The refund is due back within 30 days per the loan agreement.
Today is the 30th day... still looking for my $500k escrow refund from Genie Investments. I have my attorney and business building landlord on the emails with McMann Lending since November and they are still not motivated. I think Walter even changed his phone number. I only called him twice so I feel there are others in the same situation.
Another red flag was my loan officer couldn't even provide me confirmation of what my loan amount was.
4 Reply
Nicholas Virthe
Member since 2023 · 6 posts · 5 votes
3y
I’m going through the same story. 180 days today and still nothing. I asked numerous times the name of the bank who’s supposedly issuing this loan, I asked for the name and contact info of their attorneys, I asked to see the beloc application with the bank…. Never would they provide me anything. They are always on a conference call and never have a update when it will funds. Multiple times they gave me a funding date but it never happened. They also promised me a bridge loan since the beloc is late but the bridge loan also never happened. They gave me a fake testimonial letter from supposedly someone who got funded by a beloc …. We called and it was someone who got a unsecured line of credit and not a beloc of $19MM. Now they are telling me that the bank in UK is illegally holding the funds. I asked again to speak with the attorneys but they refused again. Now I will try to get my deposit back. I will definitely go after them… this is a scam and I have hundreds of text messages and emails where they lied to me and they put me in a ton of troubles. Here is a screenshot of the last time my loan officer said the beloc was funding (March 7th) and obviously it did not happen and now they telling me again they don’t know when it’s gonna happen …
3 Reply
Alex BekezaBusiness Member
Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
3y
@Bobby Nilsen I'd stick to a lender you can find here on Bigger Pockets with Bona Fide reviews on their profile from other members.
[email protected]818-606-8823
Investor Property Loan5308 Reviews
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Bobby Nilsen
OP
Rental Property Investor · Los Gatos, CA · Member since 2017 · 124 posts · 131 votes
3y
@Nicholas Virthe @Neil Hoffner @Matthew Sawicki
Thanks for your input. Seems like there’s more issues with these guys than benefit. Probably good for a few select investors.

@Alex Bekeza
Appreciate the feedback Alex but I’ll say some of my best lenders have nothing to do with bigger pockets. Completely agree that a lender with great reviews is good but boxing myself to bigger pockets only wouldn’t be a good business model. Sometimes, big sometimes, the unknown is the best and most opportunistic option.

3 Reply
Neil Hoffner
Member since 2023 · 3 posts · 4 votes
3y
I have also been working with Michael Lanza as well. If you look at the McMann Lending LLC address it is just the attorney's office in Chicago as they do not have a physical location. Michael Lanza has a FL area code. The straw man crew on the emails have no one with a digital professional fingerprint (facebook, linkedin, or on McMann's website).
1 Reply
Nicholas Virthe
Member since 2023 · 6 posts · 5 votes
3y
i had a really bad day and I’m under a tremendous amount of stress. I should of never write this comment and I tried to removed it a few minutes after writing it but this website does not allow you to remove your own comment? The beloc is a lengthy process and we should never write a comment when we are heated… apologies to McMann and his representatives.
0 Reply
Josh Goodeaux
Member since 2023 · 2 posts · 2 votes
3y
Is anybody on here sure this is a scam?
We have been talking with Michael Lanza as well. We are purchasing a 72 unit apartment complex and are looking into McMann lending. We were approved for 4.2M and have sent in the 7,900 fee.
Any feedback from prior investors that have used this company and been funded would be appreciated.
our terms our 5% 15year Interest only
0 Reply
Bobby Nilsen
OP
Rental Property Investor · Los Gatos, CA · Member since 2017 · 124 posts · 131 votes
3y
@Josh Goodeaux hey Josh not sure it’s a scam. Seems like they lend it’s just a little more outside the box than most lenders and has some stipulations that you typically don’t see.
Not sure everyone’s story and circumstances but it seems this is the perfect loan for someone who has an asset that is just outside the lending criteria of what one would typically see.
My experience is I didnt go through with them. They lost me when my broker quoted rates to me and then they reached out to me, not sure if they were trying to cut him, but with significantly different rates. Just didn’t feel right. Please let me know how it goes.

0 Reply
Doug SmithPro Member
Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
3y
Not familiar with them, but that doesn't mean they are bad. Just be sure to only pay for third-party fees (appraisal, etc). Don't give them any junk fees until they close. Some of these guys are notorious for collecting non-refundable money up front and then finding a way to back out of the deal.
1 Reply
Josh Goodeaux
Member since 2023 · 2 posts · 2 votes
3y
@Doug Smith I believe we are looking at other options, just doesn’t seem to be for us. They haven’t requested appraisal on the apartments, and I was also told the complex would not be mortgaged either, which seems off to us. Now they are requesting 115,957 for 3 months of prepaid interest and also for 3rd party escrow bridge fee.
2 Reply
Doug SmithPro Member
Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
3y
Quote from @Josh Goodeaux:

@Doug Smith I believe we are looking at other options, just doesn’t seem to be for us. They haven’t requested appraisal on the apartments, and I was also told the complex would not be mortgaged either, which seems off to us. Now they are requesting 115,957 for 3 months of prepaid interest and also for 3rd party escrow bridge fee.
Yeaaaaahhhh. Definitely run from that. I'm glad you have decided to look elsewhere.
1 Reply
Sarthanya Renga
Member since 2023 · 1 post · 3 votes
3y
Quote from @Nicholas Virthe:

i had a really bad day and I’m under a tremendous amount of stress. I should of never write this comment and I tried to removed it a few minutes after writing it but this website does not allow you to remove your own comment? The beloc is a lengthy process and we should never write a comment when we are heated… apologies to McMann and his representatives.

Hi Nicholas,
Why would you like to delete your post? Since you are regretting for making your first post, does it mean you got your fund already or what is happening with your application process?
3 Reply
Walt Trock
Financial Advisor · Chicago, IL · Member since 2016 · 13 posts · 1 vote
3y
Quote from @Bobby Nilsen:

@Nicholas Virthe @Neil Hoffner @Matthew Sawicki
Thanks for your input. Seems like there’s more issues with these guys than benefit. Probably good for a few select investors.

@Alex Bekeza
Appreciate the feedback Alex but I’ll say some of my best lenders have nothing to do with bigger pockets. Completely agree that a lender with great reviews is good but boxing myself to bigger pockets only wouldn’t be a good business model. Sometimes, big sometimes, the unknown is the best and most opportunistic option.

0 Reply
Walt Trock
Financial Advisor · Chicago, IL · Member since 2016 · 13 posts · 1 vote
3y
Since the Federal Reserve has stopped making US Dollars cheap and easy it seems some loan applicants have forgotten that the commercial lending money supply has been reduced by over 50%. Since supply has diminished it would be appropriate to look at commercial loan applicants unrealistic demands with concern about the wherewithal of the applicant lodging the complaint.
0 Reply
Walt Trock
Financial Advisor · Chicago, IL · Member since 2016 · 13 posts · 1 vote
3y
Quote from @Neil Hoffner:

I have also been working with Michael Lanza as well. If you look at the McMann Lending LLC address it is just the attorney's office in Chicago as they do not have a physical location. Michael Lanza has a FL area code. The straw man crew on the emails have no one with a digital professional fingerprint (facebook, linkedin, or on McMann's website).

0 Reply
Walt Trock
Financial Advisor · Chicago, IL · Member since 2016 · 13 posts · 1 vote
3y
The ICA account funds have been refunded according the the terms of the loan agreement. If abiding by the terms of the loan agreement is an issue please let McMann Commercial know what specific laws or contractual concerns have been violated.
0 Reply
Account Closed
Member since 2023 · 10 posts · 9 votes
3y
Quote from @Neil Hoffner:

I have had significant issues with McMann Lending on a BELOC.
I went with them as they were referred to me by a preferred lending group in Sept 2022. I paid the $7.8k application fee for a BELOC loan for $5M, 4.0% fixed for 10 years, with 10% downpayment going to escrow that auto pays interest. As indicated earlier the loan is funding in 2 Tranches.
Tranche 1 - 20% of the loan amount awarded within 75 days, 6% fees taken out of the entire loan amount. Thus, 14% of the loan amount is available for deposit.
Tranche 2 - 80% of the loan amount awarded within 75 days of the first Tranche deposit.
After 140 days since I made the escrow deposit of 10% of the loan amount, and threatening to cancel the loan, I was told the first tranche was available. I did not take it as the funding of the 2nd tranche was unpredictable and it would be extremely difficult to find another bank willing to take me if the 2nd tranche never came. It has been extremely difficult to get a hold of someone who is accountable. No one picks up the website phone, no one calls back except for the loan officer I was working with who gets me nowhere after very delayed responses and answering most questions with apologies.
I canceled my loan (send a notary via FEDEX, UPS, certified mail, and email). I was told I need to go through their portal to start it, and I did. The refund is due back within 30 days per the loan agreement.
Today is the 30th day... still looking for my $500k escrow refund from Genie Investments. I have my attorney and business building landlord on the emails with McMann Lending since November and they are still not motivated. I think Walter even changed his phone number. I only called him twice so I feel there are others in the same situation.
Another red flag was my loan officer couldn't even provide me confirmation of what my loan amount was.

1 Reply
Neil Hoffner
Member since 2023 · 3 posts · 4 votes
3y
I used the update selection a few weeks ago and nothing seemed to change on my comments or linked my update. So I will repost my update:
I wanted to confirm that McMann Lending has returned the escrow of $500k on 4/10. Behind the scenes there were several emails and phone calls coordinating the date of the transfer of a significant amount of funds. The loan agreement did specify 30 business dates vs 30 days. New agreements call for Business Banking days as there is and can be quite a difference in the actual days needed to wire a refund.

For my particular project, the financing requirements were difficult to match this BELOC product as I had a signed lease with very hard target dates for meeting the financial contingency, permits, construction, and eventually the grand opening of a new business. I had a relatively late start in financing due to the complexity of multiple businesses already meeting the SBA 7a cap, and the new business would conventional loans that would not be fully collateralized. I believe McMann has tried hard to meet the target dates in a difficult market to secure funds which led to unforeseen delays. Their BELOC product does offer a huge percentage savings (4% fixed at the time) vs an SBA loan (prime +~2%), less personal collateral, and interest only options, which is why I wanted to give them a try for this new business location start up. Unfortunately the timing did not work out, I have spoken with Michael about the possibility of refinancing in the future. The BELOC is not a product for everyone nor all situations, even though it does have significant benefits if it does fit your needs.
I just want to state that I would put more emphasis on those who have actually worked with them rather than speculation of them as a lender. While the staff may not always have the answers I am looking for or hard dates, I have been able to reach out to my primary contact Michael Lanza. He has been willing to give me Walt's contact upon request. Regarding my refund Walt has contacted me directly upon closing in on the target date, and a follow-up confirmation (both verbal and email) on the actual wire on their end.
0 Reply
Nicholas Virthe
Member since 2023 · 6 posts · 5 votes
3y
Quote from @Sarthanya Renga:

Quote from @Nicholas Virthe:

i had a really bad day and I’m under a tremendous amount of stress. I should of never write this comment and I tried to removed it a few minutes after writing it but this website does not allow you to remove your own comment? The beloc is a lengthy process and we should never write a comment when we are heated… apologies to McMann and his representatives.

Hi Nicholas,
Why would you like to delete your post? Since you are regretting for making your first post, does it mean you got your fund already or what is happening with your application process?

0 Reply

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