Lender Scam: Has Anyone successfully worked with this company?

[Ndy Onyido]

Hello BP Nation.

After reading the post with link below:

https://www.biggerpockets.com/forums/517/topics/60645-lender-scams-and-warning-signs-beware-protect-yourself-

I decided to share this experience to ensure no one is being ripped off by this practice:

I met this company through a trusted TK provider I was going to buy a property from.

The lender is a broker by the name Tony O’Brien who works with/for a firm called Summit & Crowne Capital Partners. Apparently he is a broker with this firm. He also runs a company-Real Estate Lender USA with NMLS # 1473497 as indicated on their site. Company claims to do rehab financing, bridge financing etc. However, he uses this company to collect upfront ‘application fee’ of $1,950 with no caveat should the loan not materialize, only a condition that $500 will be credited back at closing.

Now here are my red flags and I wonder if this is a deliberate guise to defraud the unsuspecting public:

1.He insists on collecting this ‘application fee’ of $1,950 upfront.

2.My understanding of brokerage is that the broker is compensated by the principal. I know he is a broker because the documents/forms he sends are from Summit & Crowne Capital Partners and Peak Asset Lending.

3.In fact, other forms , like applicant’s cashflow/statement of net worth etc were from Summit & Crowne for the same transaction, although the pre-approval letter he provided was from Peak Asset Lending ! .

4.This pre-approval for which he charges $1,950 upfront from his realestatelenderusa.com website is available for free on Peak Asset Lending website. (www.peakassetlending.com)

• 5.Even the experienced TK provider who has been in the RE business for decades has not been able to get an approval for any of his clients from this lender.
• 6.Appraisals come in way below market value—the one I paid for on his site was 40% below market and the TK provider was very furious. He said this has been the trend as if it was deliberate to disqualify applicant/transaction.

I need anyone who has successfully done a transaction with this guy to provide me with details of his/her experience. I can disclose the full details of the deals we have attempted to consummate that were all still births.

My primary goal is to make sure no one is taking undue advantage of the public here.

Thanks,

Ndy