Anyone dealt with fundmygap?

9 Replies

I received a call the other day from fundmygap.com, they were seeking gap funding referral opportunities. In the course our conversation, I asked them who else they were doing business with in my area. He mumbled a few names, which were almost unintelligible, except for one, which I recognized, because I know the principals and the loan originators.

I asked him two more times to repeat the names, and by the third time, when I could finally understand them, he told me he really didn't want to tell me the names of the other companies he worked with in my states. I told him I was certainly going to call them and ask for references, and he told me he didn't want me to do that. That call ended quickly.

I wanted to check and see if anyone else has heard of them or done business with them, and raise the level of caution if someone chooses to pursue gap funding with them.

As a point of information, he told me they have done about 400+ deals, they require that they be on title with the borrower, and they take over the project if necessary, which they have done on 12 deals. Just fyi.

I know the person that started the program, and I've promoted the person that started that firm as a gap funder. I've heard a little here and a little there of issues that could be considered "learning experiences", or down right loss of funds.

I'm not sure why they would avoid references.

Ann,

I met the founder last year at a conference. After I signed a non-disclosure, she and her financial guy sent me properties to fund for 8-10 months before I accepted one.

The appraisals, BPO, CMA, contractor docs, comparables, MLS information, photos, etc are on the site and updated often. I balked on the early deals because I was not comfortable with them. The BPO and the CMA seemed off to me since I know the neighborhoods in my area. If I get beyond the obvious signs, I can research the contractor history. I did sign onto a deal last month because the contractor got a home in a nicer area for a great price. It would be hard for the contractor to screw up this deal.

My only complaint so far is that the paperwork from my SD IRA Custodian is onerous.

The research I did into the LLC, the owner and the CFO turned up nothing negative. The owner is all over the conference circuit (I have even heard her on Jean's program) and the CFO is a father of 3 with a banking background. The LLC is registered in the state of Delaware. Additionally, banks are now required to know-the-customer. JPMorgan's *** would be in a sling from any number of government agencies if they hadn't done some level of due diligence. I even know their attorney - who is also a member on this site.

If I was inclined to be a contractor and was working this from the other direction, I would do the same research. I am guessing contractors' flush with cash would not be utilizing this firm - or yours, for that matter.

That is all I have for now.

Chris

Trust, but verify.

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DISCLOSURE:  No affiliation whatsoever!!!  The name of the company piqued my interest, so I did a little research, 

and decided to share what I learned.  Nothing more.  Nothing less.

So, I found something online referencing "Fund My Gap, LLC". It piqued my curiosity, so I decided to do some research to see what the company is and what it's all about. After finding this (admittedly old) post here on bigger pockets, I thought I'd update this thread with what I found out after a little research....

A company called "Fund My Gap, LLC" was forced into involuntary chapt 7 bankruptcy in Northern CA by a filing made by several creditors on 2/13/2015.

According to PACER (the federal bankruptcy system) the status of the case is shown as:

14-44853 Fund My Gap, LLC
Case type: bk Chapter: 7 Asset: No Vol: i Judge: Charles Novack
Date filed: 12/15/2014 Date of last filing: 12/15/2016
Pending Statuses

StatusBegin
Date
Time in
Status
#Status Set By
Awaiting Involuntary Answer 12/15/2014 829 days1 Involuntary Petition (Chapter 7)

Three claims were filed in the case:

Details1-102/13/2015Claim #1 filed by J. Fowle, Amount claimed: $97000.00 (rs)

Details2-109/28/2015Claim #2 filed by T. Rouhier, Amount claimed: $50000.00 (rs)

Details3-110/21/2015Claim #3 filed by M. Sanders and K. Sanders and/or their Assigns, Amount claimed: $105960.00 (ePOC)

Additionally, several creditors were listed on the initial filing:


Debtor
Fund My Gap, LLC
Concord, CA 94521
CONTRA COSTA-CA
SSN / ITIN: xxx-xx-9999
represented byFund My Gap, LLC
PRO SE

Petitioning Creditor
A. Johnson
Arlington, TX 76002
represented byC. Wimmer
Emergent Legal
San Francisco, CA 94102

Petitioning Creditor
Q. Johnson
Arlington, TX 76002
represented byC. Wimmer
(See above for address)
Petitioning Creditor
MMO Investments, LLC
Laguna Niguel, CA 92677
represented byC. Wimmer
(See above for address)
Petitioning Creditor
Yes or Yes Investments, LLC
Canfield, OH 44406
represented byC. Wimmer
(See above for address)
Petitioning Creditor
RPC Investments, Inc.
Poway, CA 92064
represented byC. Wimmer
(See above for address)
Petitioning Creditor
Lake Fin Holdings, LLC
Kingsport, TN 37660
represented byC. Wimmer
(See above for address)
Petitioning Creditor
SNT Living Solutions, Inc.
Youngstown, OH 44514
represented byC. Wimmer
(See above for address)


These are all public records, so that is how I obtained the information.  Nonetheless, I have edited out the addresses and phone numbers for all people, just out of courtesy.

I have no idea of the final outcome (if there is or was one).  According to the latest docket entries (as of today) it appears that the case is still pending, and the debtor has not yet appeared in court.

So, as a cautionary tale, be careful about who you invest with and how. I don't know what other remedies, if any, are available to these creditors, or if other avenues are or will be pursued, but it certainly seems like an unpleasant, uphill battle!

Below are a few salacious details:

FYI,

-Phil

------------------

***From Doc 24 titled "OBJECTION TO DISMISSAL OF CASE FOR DEBTOR’S FAILURE TO FILE REQUIRED DOCUMENTS"  (some info redacted by me) 

  1.   Petitioning creditors ...
  2. ...
  3. ... (the “Petitioning Creditors”) hereby object to the court’s order contemplating
  4. dismissal of this petition for debtor Fund My Gap, LLC's ("FMG") failure to file required
  5. documents (ECF 20).
  6. This is an involuntary petition occasioned by FMG’s failure to repay the Petitioning
  7. Creditors more than $300,000 in promissory notes secured by real estate held in the name of FMG
  8. or its affiliates. ECF 1. Although FMG has defaulted in this proceeding and its principal, Heidi
  9. Linder, has attempted to avoid responsibility for her actions by evading service (ECF 18), the
  10. Petitioning Creditors believe, based on their experience and investigation, that FMG holds title to
  11. valuable assets that could be used to satisfy their and other creditors’ claims, and that additional
  12. assets may be recoverable as avoidable fraudulent or post-petition transfers. It would thus be
  13. unjust to dismiss this petition for FMG’s failure to file the required documents—creditors would
  14. be deprived of any compensation, and Ms. Linder would retain control of FMG’s assets.
  15. For the foregoing reasons, the Petitioning Creditors request that the court grant the
  16. Petitioning Creditors and the appointed trustee until August 31, 2015 to file the required
  17. documents or seek an order excusing the filing of those documents.

 Dated: July 1, 2015 ///

By: Attorneys for Petitioning Creditors 

-------

And,  SIXTEEN  (16 !!!) "Statement Adjourning Meeting of 341(a) Meeting of Creditors. Meeting of Creditors Continued."  filings in the docket dated:

08/07/2015, 09/18/2015, 10/16/2015, 11/13/2015, 12/11/2015, 

01/08/2016, 02/05/2016, 03/08/2016, 04/19/2016, 06/07/2016, 06/24/2016, 07/22/2016, 

08/19/2016, 09/16/2016, 10/28/2016, 12/09/2016

With the last docket entry on the subject stating "Next Meeting of Creditors to be Held on 1/6/2017 at 11:00 AM at Oakland U.S. Trustee Office Debtor absent."

It appears to me that it's probably difficult, (and probably expensive too) for these creditors to get meaningful relief through this bankruptcy proceeding.   

The last order that I see on the docket is:

===

Form OCH

UNITED STATES BANKRUPTCY COURT 

Northern District of California

In Fund My Gap, LLC Case No.: 14−44853 CN 7

Re:

    Debtor(s)                   Chapter: 7 

ORDER FOR DEBTOR(S) TO APPEAR 

AT CONTINUED MEETING OF CREDITORS

Parties are hereby notified that the meeting of creditors is continued to:

DATE: January 6, 2017 TIME: 11:00 AM
LOCATION: Office of the U.S. Trustee, 1301 Clay St. Room 680N, Oakland, CA 94612 

A failure of the debtor(s) to appear at the aforementioned continued meeting of creditors may result in dismissal of this case without further notice or hearing.

Dated: 12/13/16 

     By the Court:  

      ... 

    United States Bankruptcy Judge 

===

(What a nightmare!!!)

@Ann Bellamy  
Any time someone solicits you for business, make sure they have a track record with references from other people whom they've been able to benefit.

I've seldom seen any company offer gap funding on a large scale all throughout the nation.

Most Gap Funders are private individuals who have $100k+ in an SDIRA and want to deploy it into 2nd TD investments. These people are best found at your local real estate investment club