BP members please help!
I have a single family fix and flip that I have under contract which I will be using all of my cash,there is another property I want to purchase but don't want to stretch myself to thin so I want to go the Hard Money route. I've been referred to a broker and he had me fill out a application with a company called Global Equity Allliance has anyone done business with them? And can anyone tell me if a $50 application fee is normal when dealing with Hard Money? Can someone please put me at ease as far as this company and Hard Money is Concerned.
Most hard money lenders will charge an application upfront because they want to make sure they are not wasting their time with a tire kicker. I think Global Equity Alliance will issue you a fraudulent proof of funds. Do you want to do business with someone like that?
As hard money lenders for the most part base the loan on the collateral, the only upfront charges should be the cost of an appraisal. From my experience working with hard money lenders, that is usually the only upfront fee. Some charge an upfront fee once they get to loan docs, as they need to have them reviewed by an attorney. We have been working on a very complicated million dollar loan for about 2 weeks now, and have not charged a penny to the client. i have been staying in contact with him to make sure that he will be okay with pricing and terms, while we structure it, so that when we get to loan docs the chances of him backing out are minimal. Check out rip off report and see if you are dealing with the same people.
Thanks for the imput,But Nick you said check out "rip off report" is that on this site or is that a website?
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As Nick indicated, the only fee a lender should ever charge upfront is the appraisal, and you should get a condition commitment before the appraisal.
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