All Forum Posts by: Deborah Wodell

Quote from @Jay Hinrichs:

junk fee's that show up on the hud at closing

lenders all offer the same points pretty much but dont disclose junk fee till the settlement statement comes out .. and points is just a bait and switch.

One lender hit one of my clients that I was doing a JV with... for 800 dollar property tax monitoring fee.. really on a 12 month loan..

but what happens is borrowers just focus on the points with no clue to the junk fee's  or using brokers who add fee's and points on top of the actual lenders fee's again bait and switch.

I hear you on that—junk fees can be such a frustrating surprise, especially when they show up last minute on the HUD. I try to stay clear from these types of lenders. And I agree that many borrowers focus too much on the points and overlook hidden fees. 

Quote from @Jacqueline Wright:

Hey Deborah,

Great question—unfortunately, there are some lenders out there that really make the process more stressful than it should be. One of my biggest red flags when dealing with lenders is lack of transparency around fees. I once had a lender who quoted me a certain rate and closing costs upfront, only to sneak in additional fees right before closing—total nightmare! I had to scramble to cover the extra costs and it completely threw off my budget for the investment.

Another red flag for me is delayed communication. If a lender isn’t responsive during the initial stages, I’ve learned that’s a strong indicator that it’ll be a painful process all the way to closing. I now make it a habit to set clear expectations with lenders upfront and ask about their average response time

Lack of transparency and slow responses can definitely be deal breakers, especially when you’ve already got everything planned out. It makes all the difference.

Quote from @Clayton Silva:

The common theme from this is definitely last minute fees.  Not to justify this, but it is super important for lenders to have the hard conversations up front.  Much of the time there is a reason for a last minute fee increase.  Common reasons:

1) Change of closing date (instead of closing end of month, if it gets pushed to beginning of next month, prepaid taxes, interest and insurance will increase because you have through to months end)

2) Appraisal comes in low and LTV goes up. If your LTV changes from say 70 LTV to 80 LTV or even from 79 LTV to 81 LTV it can put you into a different interest rate pricing bracket and change the cost of rate.

3) Changing vesting at the last minute to an LLC can require a last minute legal review.

Now all that to say, there are definitely junk fees and other last-minute nonsense that gets added so lookout for those.  Working with an LO that is willing to have hard conversations as soon as they come up can help set expectations throughout the process.  

This is definitely true. I always make it a point to be upfront with my clients about potential fees from some of the lenders I work with, like application fees, appraisal costs, and others. It’s crucial to set those expectations early on to avoid surprises. I once had a situation where a client’s appraisal came in way below the expected value, and the numbers just didn’t work anymore, so we had to forfeit the deal entirely. It’s tough, but being transparent from the start can save a lot of frustration down the line.

Quote from @Erik Estrada:

Quote from @Deborah Wodell:

As both an investor and a broker, I’ve worked with a variety of lenders, and while many are solid, some have issues—whether it’s delayed closings, surprise fees, or poor communication.

I’m curious to hear from the community: have you had any bad experiences with lenders that we should all be aware of? Which lender was it, and what were the biggest problems you faced? I’d love to hear about the red flags to watch out for, so I can hopefully avoid the same headaches.

For me, clear communication and transparency upfront are key, but I know not every lender operates that way. What’s your worst experience, and how did you handle it?

Not so much the lender but the account executive working at the company. If you have a bad rep, you will have a bad experience. 

I have saved many fall out deals from reputable lenders that I use on a day to day basis, It's just the client is not very familiar with the lender's process/ guidelines and/or the rep was being very unethical (bait and switch.. etc..). It's important and an investor/mortgage broker that you carefully vet your lenders and understand what each lender is looking for. 

Yes there are many scammers out there as well, but honestly you can sniff them from a mile away. Honestly anyone that falls for it did not do a good job at researching and just "pushed it in". 

Thanks for sharing that insight—it’s so true that the rep can make or break the experience, no matter how reputable the lender is. It’s great to hear you’ve been able to step in and save deals!

I’m curious—what’s your process for vetting lenders or account executives to ensure they’re legitimate and ethical? How do you spot the red flags and make sure you’re not dealing with a scammer? Would love to learn more about your verification methods, as it’s always good to hear different approaches

As both an investor and a broker, I’ve worked with a variety of lenders, and while many are solid, some have issues—whether it’s delayed closings, surprise fees, or poor communication.

I’m curious to hear from the community: have you had any bad experiences with lenders that we should all be aware of? Which lender was it, and what were the biggest problems you faced? I’d love to hear about the red flags to watch out for, so I can hopefully avoid the same headaches.

For me, clear communication and transparency upfront are key, but I know not every lender operates that way. What’s your worst experience, and how did you handle it?

I can help you on this. 

I’ve had experience with real estate investing in the past, but now I’m planning to dive into fix & flip projects. Even though I know the numbers well from my previous experience, I’m sure there are some unique challenges when it comes to flips—like managing renovations, timelines, and of course, staying on budget.

For those of you who made the transition or started out flipping, what’s something you wish you knew before your first project? Whether it was a win or a tough learning experience, I’d love to hear your insights on what you’ve learned about flipping that’s different from other types of investments. I’m gearing up for my first deal and want to go in with as much knowledge as possible. Thanks in advance! 

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In today's market, with rising interest rates and fewer good multifamily deals available, focusing on (SFH) might be a smart move to get started. SFHs are often easier to finance, and there's usually more demand, which gives you better comps and exit strategies. Plus, as a beginner, you'll get a feel for managing a deal, working with contractors, and understanding your local market. Once you've got some experience and equity built up, you can more confidently move into multifamily properties when the right one comes along.

That said, if your goal is to scale into multifamily, don't lose sight of that. Be patient for the right deal, but in the meantime, you can build your capital and experience through SFH flips or rentals. The market will shift, and those multifamily opportunities will come—just make sure you're ready when they do.

For a flip, you'll want to get a builder's risk policy, which covers the property during renovations, including any damage from fire, vandalism, or weather while it's vacant. Since your regular agent won’t cover it, you can work with a broker who specializes in investment properties. If you’re considering turning it into a rental, once the renovation is done, you can switch to a landlord insurance policy that covers both the property and any liability related to tenants. Just make sure the builder’s risk policy is in place while the property is vacant and under construction to protect your investment.