I wanted to ask if anyone has had any experience doing business with a specific lending Group located out of San Clemente? I'm not sure if I am allowed to name them specifically in the forum so if you are curious and think you can help, private message me or email me at [email protected]
I have an LOI for a deal I want to buy and the rate and term are real good, however they do ask for a $3000.00 "due diligence / doc fee" applicable to the points at closing and I know that this can be a red flag.
Thank you in advance for your input.
Just to be clear, they want the $3000 to get started.
what rate and term are they quoting you? Unless it's really good and they have a good rep for performing, I'd stay away.
you can get 10-11% and 3 to 5 pts all day long with your only upfront being the appraisal.
That's what I'm looking for... the reputation, or any direct experiences. Their quoted rates are lower than you noted for both interest and the points, plus they are offering a long term (which I heopfully won't need, but it's good to have I suppose).
I would look elsewhere. The up-front cost is a huge red flag IMO. You pay them 3K, they say no, now you're out 3K and they made a quick profit.
I agree with the others on this thread that upfront fees other than an appraisal is a red flag.
You can start a thread in the forum "ask about a real estate company" to see if anyone else has done business with them.
@Shawn Couch ..agree with everyone else who posted here. No one should be charging you a $3000 fee just to get started on the hard money side. I would be interested to know who it is; may be able to tell if they are a credible source. 99% of the time, all you should be paying for is an appraisal, and even most hard money don't necessarily require that.
like any other service you have to shop around to compare The Norris Group is one of the most reputable in souther cal
Definitely shop around. An up front fee tied to an appraisal (where you directly pay the appraiser of their choice) is a reasonable cost from a borrower's perspective.
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