Is United Arab Capital Partners a scam?

Question

I have been working on a few different loans with them. They said we are all good to go. They have not asked for any money up front. That would have been my first hint they were a scam. It came down to transferring funds to my account. They have told me they cannot transfer to a checking or savings account it must be a line of credit. This does not seem right to me. They say it is because of taxes and suck. What do you think?

Ibrahim Hughes · Answer

Nate Smith - why not visit your local county recorder's office (and neighboring ones as well, if needed) and see if they've issued any other loans (via mortgages they've received from borrowers) in your area. Ask them where else in the US did they issue loans and what entity did they use. Maybe you can contact a title co. to confirm that they have recorded mortgages in their name. Just a thought.....

Maybe, if they made loans locally, you can get in touch with their borrowers and see how the experience went.

Jason S. · Answer

Instead of what seems "fishy", can you think of anything about this deal that seems legit?

Is your lawyer commenting on the reasonableness of the contracts and agreements because anyone can write you a contract that is perfect, assuming the underlying presumptions of the contract are real. e.g., real company, real funds, real intent, etc.

Just in fun, use Google images and search for "seems legit".

For all I know what your doing may be fine, but be careful, from everything you have said I would be very leery.

Nate Smith · Answer

I have and do often. They were a funding source I connected with on Linkedin. I had decided to give them a shot. I have used overseas money before, it is typically cheaper money and they will lend at a higher LTV.

Albert Hasson · Answer

Sounds fishy to me.  Why can't you get a loan from a US based bank?

Nate Smith · Answer

This is what I received when I asked about not being registered in the UK . “We are registered in Abu Dhabi, UAE. We only have a bureau office in Birmingham, United Kingdom. Companies listed on the list are companies originating from and originally registered in the United Kingdom. We originate from the United Arab Emirates.”

Nate Smith · Answer

He said it needs to go into a LOC because of overseas taxing. If it goes in there it is taxed differently is what he was saying. There is no money requested up front. I have talked to them several times and they have not asked me to fly over there. So those two things weeded out a lot of my worries. I sent it over to my lawyer to review and he said it was fine. They have asked for my 20% for the loan but when we close on the deal at my title company. They are planning to come to the US to look at the property. Something just does not seem right and that is why I have asked for your opinion.

Kevin Yeats · Answer

Nate, ask them to explain why the funds have to be transferred into a LOC.

Typically, when a lender supplies a line of credit, the lender will fund a checking account.  The borrower then can write checks to draw on the line.  For a loan to be useful to a borrower, the borrower must be able to access the funds.

Perchance, did this lender require you to post a bond for all or part of the loan amount and use their bond issuer?

I have become aware of some overseas lenders that offer loans right on the edge of "too good to be true" .... reasonably low interest rates, good terms, even 100% funding ... with the catch of posting a bond upfront and using their bonding agent.

I'm not saying that is what you have experienced or that this group is not fully above board.  I'm just sending up a yellow or red flag.

Simon Campbell · Answer

Nate Smith:

There doesn't seem to be any bad reports about them online. But, there aren't any good ones either. Everything online is them tooting their own horn.

According to their website, they're supposedly located in the UK. But, when you go to the Companies House, which is one of the UK's official sites for checking for registered company information, no such company seems to exist.

Check it out: http://wck2.companieshouse.gov.uk/176861c5660d76f8b648ee6d4472c282/companysearch?disp=1&frfsh=1350677026result