Has anyone ever heard of a private money lender called, "Quantum Assets, LLC? They want an underwriting fee up front and I was wondering if that was unusual? Thanks.
Don't ever pay fees upfront for a loan. The one exception is potentially for an appraisal.
I found some other lenders that do not require that also. I have done this before in the in late 90's and am eager to get going again. I went to your website and think what you are doing is fantastic. I will checkout your blog and will surely enjoy reading your progress and daily activities. I'm glad you're willing to do this for others without asking for someone to buy a membership or some other crap. I will do the same thing with my results and maybe even incorporate youtube. Thank You!
First off, you need to determine if they are a direct lender or a broker. If a direct lender, what is their track record, i.e. they finance a good percentage of deals or they merely collect upfront fees for a living?
If they are a broker, is your deal so hard to finance that the broker will have to spend an inordinate amount of time finding the "needle in the haystack"? Or is it a plain vanilla deal? Also, if a broker does your deal require "packaging" before it's submitted to lenders?
Although as policy I never charge an upfront fee (because I want to have as large a deal flow as possible), I don't outright think an upfront fee is by itself inappropriate. The problem is that many are in the business of making money on this fee and providing little or nothing in return. So, that being said one must use extreme caution before paying a fee upfront. Or as J Scott said, just never pay an upfront fee!
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