Rod Aycox Limited Liability Company

10 Replies

I Googled Rod Aycox before applying for a business line of credit and it appeared from his apparent wealth he could make private Loans.  I Applied and got my company approved for $10,000 on terms that were so good, it just didn't seem to be true.  Then came the "Red Flag".  $850 processing fee required up front that could not be taken from the Loan proceeds.

Only a copy of my Drivers License was sent with the application to an approval letter which did not indicate any up front fees were clearly required. Just wanted to know if anyone has sent this Lender an up front Fee, as I'm sure I'm not the first person who finds up front fees for Loans a problem. If someone on BP moved forward on a leap of faith, I would like to know.

up front fees can be red flags but there are lenders who charge a processing fee of a few hundred for sure-it is not automatic that it is a scam despite what many say. As a broker ive seen small fees get charged and loans close often 

With that said do as much research as possible on the lender also request references and any verifiable information that you can. Since it is a private lending company i would be careful for sure. Also ensure that he isn't brokering your deal and charging his own separate fee

Thanks for the advice Mr. Turner.  I have been researching but, can find nothing on "LoanMax Limited Liability".  I once paid $250 on a conditional letter of approval and was told I didn't meet lending guidelines of the company.  However, even with not Guidelines outlined, I was refused refund of the $250 processing.  This lender asked for  but stated income, my Drivers License and nothing else but, $850 in advanced of funding

Wow.  Good to know if somebody was talking about him.  He sent me friend request.  And I could not find his company when I searched on google.  And his account kept closing so I was wondering what happened... kind of somebody suspicious.

Rod replied to my email. Here's what he says:

1. Rod is a "licensed private lender registered with LoanMax Limited Liability Company." He lends to investors.

2. He makes "all kinds of loan at a 5% interest rate with a maximum duration of 30 years."

From one of Rod's emails:

REQUIREMENTS:
(1) Borrower must have a working bank account in his/her name or company name which will be used for the transfer of the loan.
(2) Borrower will start the repayment of his/her loan 3 months after the loan has been transferred.
(3) Borrower will be given 3 months of grace to payback the principle loan amount with interest at the end of the agreed loanduration before legal actions will be taken.
(4) Failure to pay back the loan at the expected date / period, legal actions will be taken against the borrower by my attorney.
(5) Address: You must inform me about change of circumstances and must tell me promptly if you change your residential address or zip, or if you think there is any information That I Should be aware of.
(6) There is no prepayment penalty.
(7) Interest: Interest rate ranges from a minimum of 5% irrespective of the loan amount.
(8) Loan Process: It takes the interval of 3 to 5 working days from application to funding.
(9) Loan Amount: Loan amount ranges from a minimum of $10,000 - $50,000,000.00
(10) Loan duration: Loan duration ranges from 1 month to 30 years.

REPRESENTATIONS:
1. Borrower must be at Least 18 years of age
2. The Loan will be granted regardless of your credit score
3. There is no pre-payment penalty
4. Borrower do not need a Co-Signer for this loan
5. Borrower must be a Citizen or have a residential permit of where you are applying from
6. Borrower must have a valid Government approved identification card
7. Borrower is responsible for all loan charges i.e fees are charged to cover costs involved in processing the application including credit checks, Property appraisal, loan security deposit and basic administrative costs. Most application fees are refundable, even if the lender decides not to offer credit to the individual applying for a loan. This fee payment comes before funding.

I emailed him one last time and asked about his maximum LTV, first position lien on the subject property, lender's insurance policies, and whether or not he's acting as a broker or using his own money.

I'm still waiting for Rod's reply.

Rod replied to my email. It sounds like he's acting as a broker between borrowers like us and a pool of third-party investors. He did not say anything about maximum LTV, liens, or insurance.

I asked 9 follow-up questions:

1. What is the maximum loan-to-value and/or loan-to-cost amount your investors are willing to lend?
2. Do your lenders need first-position lien on the subject property?
3. Do your lenders need a lender’s insurance policy on the subject property?
4. Are your lenders Accredited Investors as defined by the SEC?
5. As the broker, do you pool funds from multiple investors to fund our loan?
6. Who pays your broker fee?
7. As the broker, do you act as is our point-of-contact after the loan is funded?
8. As the broker, do we make payments out to you?
9. As the broker, which licenses do you hold and in which states?

Waiting on Rod's reply.

@Derek Peruo

There is a lot off about this. 

1. How is the guy registered with a LLC that he owns?

2. Not a lot of shops make loans from $10k-$50M or have the connections to broker these loans. The skill set and strategy is entirely different. On sub $100k loans the profit comes from fees and it is a volume business. More loans=more money. On the $10M+ loans, those are relationship based. Not a lot of people get that large of loans and the sophistication required to underwrite them isn't something you find everyday. 

3. If you are making $50M loans your templateted communications don't have spelling errors in them. 

4. Real HML don't quote a rate floor, since the market is dynamic, as we have seen in the past two weeks.

Best case, this guy is a novice who hung out a shingle hoping to make a quick buck. 

Worst case, it is a scam, where he rakes in fees and makes minimal loans. 

Rod replied to my email. His answers to my most recent questions are in italics:

1. What is the maximum loan-to-value and/or loan-to-cost amount your investors are willing to lend?

Loan amount ranges from $5,000 to $17.5 million dollars. Loan-to-value (LTV) is an often used ratio in mortgage lending to determine the amount necessary to put in a down-payment and whether a lender will extend credit to a borrower.

2. Do your lenders need first-position lien on the subject property?

No. you’re only to provide any governmental issued ID CARD FOR VERIFICATION.

3. Do your lenders need a lender’s insurance policy on the subject property?

No, I don’t need any lender’s insurance to fund my clients deal. My company is registered and I’m able to fund deal across the globe.

4. Are your lenders Accredited Investors as defined by the SEC?

YES.

5. As the broker, do you pool funds from multiple investors to fund our loan?

I’m a licensed private lender and I fund all my deals with my personal finance.

6. Who pays your broker fee?

I pay the broke fee but there’s a security deposit fee for the borrower before the loan disbursements

7. As the broker, do you act as is our point-of-contact after the loan is funded?

You are contacting with me because I’m to fund your deal. That’s why it’s a private lending company.

8. As the broker, do we make payments out to you?

Before loan disbursements the borrower is to make a security deposit fee.

9. As the broker, which licenses do you hold and in which states?

my company’s broker hold license of an Estate agent's license in Las Vegas Nevada USA.