I am writing today because I am in need of a personal investment for a real estate development deal that I am currently working on. To give you some brief background on my company and project at hand, we are a very small company that is getting into the real estate development field. Our current project at hand is located in the Bahamas and we are currently partnered up with the land owner to develop his 21 acres into a hotel/villa resort in the Caribbean. My company, The Kisache Group, is financing the whole project and the land owner's interest in the deal is his land. We have already gotten approved for a $15.6 million dollar loan from Kennedy Funding in NJ. The dilemma arises at the commitment of the loan because Kennedy requires that we bring 1.5% of the loan value to the table at commitment. Since we are a smaller company, we are currently unable to fulfill this request. We have spoken to the land owner about putting up the 1.5% and he was very understanding and said that if he were to put up anything, it would be about 50% of the total 1.5%. So best case scenario, we are looking for a private investor for .75% of the loan value, and worst case being the private investor coming to the table with all 1.5%. Our guarantee to the investor can be a definite 200% return on the invested money within 2 years max. We have a project summary and financial data sheet with profits/losses all outlined for your viewing. I don't really want to go into too much detail in the thread so please feel free to call me or send me your contact information so that we can talk about this in detail on a conference call. All of my contact information is located in my signature. Thank You.

Regards,

Naveen Natarajan

I strongly suggest you check very closely into Kennedy Funding before paying any upfront fees. If they do not close your loan for ANY reason, you lose the entire upfront fee. Check with the NJ state attorney general's office to see if there have been any lawsuits filed for non-performance.

http://www.trautmann-law.com/kennfund.htm

Thanks a lot.

Interesting reading those court filings.

Yeah it is pretty interesting...I had never heard this about Kennedy before, and I'll be sure to bring it up to them on our next conference call...

Whoops...that was my post...I thought I was still logged in but I guess not

I dont post my opinions on lenders....but in fairness to Kennedy, they do have the money and they do fund tons of deals so their business is legit.

If you are inquiring about a lender's business tactics, you should do a google search with the companys name i.e "Acme Lender" and another trigger word i.e. "fraud" and see what comes up.

Yep...I can understand what you are saying. Appreciate the comments!

Update: Had a few people contact me, but nothing solid yet...cmon people, this is a great investment opportunity and project!

Please be careful of Kennedy Funding.

I did not know that there was a thread on this outfit until today, after I was contacted by them.

Since When does a lender ask for $10,000 for a Commitment letter to be written? and additionally......
60% loan on a appraisal, given to them by their reputable hire guns (for whom you haven't approved) The last I looked, CBEllis and Cushman did real estate only, but are just located in many states(they are just assessible)................. Agencies who probably desires to keep their fee's coming in.
You state that you have the right to hire a 3rd party appraiser that they must approve of?
In addition....
4% In lieu of equity loan Fee paid to Kennedy?
3% Committment Fee, paid upon signing the $10,000 paid for comitment letter? Come on now!
Loan to be closed pursuant to terms and conditions of KFI commitment

I must say that they are not the only people out there doing this. Apparently there are a few that I have run across. Even another Real Estate Broker jumping on the band wagon and wanting me to pay him a 3% loan fee to him for just a referral to one of these guys.

This was after they curiously enough wanted to know if I had $500,000 to put up?
This is all on a $5,000,000 loan amount.

Yeah it all seems a bit much....anyone know how a bank works? How much could I expect to bring to the table on a loan of about $19 million? (Construction Loan).

Also I am still looking for any means of acquiring this money to do this project. I am at a great disadvantage due to the fact that I am a start up company, but at the same time, I am partnered with a reputable businessman and have the land for collateral. I am trying to get this done as soon as possible so that we can get the project going. If anyone has any input or means of helping me acquire the money, please feel free to call me or email me at anytime. Thanks!

Dear Lattae, think about what you are saying.

Would you provide a multi-million dollar loan to someone who first of all has been turned down by every conventional lender. And then, without performing your own due diligence on the property.

You then address the fact that we allow for a third party appraisal to be done if the borrower disagrees with the first value. Would allow them to hire anybody without first checking their credentials? What if they were to hire their brother-in-law to do it, or a business partner, this would be alright for you to then lend them millions of dollars. I don't think so, that is why the appraiser needs to be mutually agreed upon. Besides that, you are questioning the business practices of CB Richard Ellis and Kushman/Wakefield. These are two of the largest appraisal companies in the world, do you really think they would commit fraud for my company or anybody else's for that matter. Yet that's what you suggest.

Also, tell me how many banks you use that allow the borrower to disagree on an appraisal and get a second opinion that the bank would then be obligated to lend against.

As far as that law suite that everybody likes talk about, can anyone name a major lending institution that has not been sued. Go through your databases, find all your major banking institutions and find one that has not paid out many settlements in the past. We have been in business for over 20 years, we have had 5 law suites files against us, and we have never been ordered to pay a single penny on any of them.

As far as our fees, private/hard money lenders are expensive because we take on high risk loans, we do the things that banks can not do. We can also close multi-million dollar loans in as little as 7 days, name a conventional lender that can do that. Why would you expect us to have the same fees and terms as banks without the same restrictions and guidelines as banks.

The 4% in lieu of equity means that you only pay us 4% for providing you the loan you require. People who come to us for money only have 2 options left, either a hard money loan or an equity partner. Now, anyone who does business knows that when you take on an equity partner they are going to want a sizable portion of your profits, usually between 40% and 50% depending on how much monetary involvement they have. Do you still think that we are too expensive?

We currently have over $300 million in loans on our books and closed 72 deals last year, if anyone wants to question our ability to perform they should check the numbers first.

Look, if you could find cheaper money then obviously you would not need our service, but if you have exhausted all options or if your client absolutely must close in less than two weeks then we are what you need. And I'm sorry to say it but at that point you and your client should expect to pay a premium for the money they need.

I would be more than happy to speak with anyone who has a question or concern regarding my company to hopefull clear the air about their misconceptions. Please PM or call me directly so that we do not clog up the forum with unnecessary clatter.

Sorry Terry,

Think, Thought, been there done that.......

I've been in business for almost 26 yrs.
I have run across a lot of shaker and fakers. The sad thing is that they all come in all shape, forms, and with a new line. The State Attorney General Office Investigative Services, told me once "If a con man wasn't charming and have the right words to say, he wouldn't get very far"
When your boss contacted me and explained to me in a limited summary liken to "Candyland". I then in returned requested a "Approval Letter" instead I received a, what I considered "Blackmail to receive a loan" Am I wrong? A "Letter of Interest"
You guys are going to make someone pay $10,000 without guaranteed and put a lot of loopholes, so that you can wiggle out of. By presenting to them a very deliberate and crafted letter.
I have also discovered that the Commercial loaning industry, isn't regulated very well, in most states. Anyone can pay a small fee and receive a license of sorts and hang out a shingle. AM I WRONG!

But what ticked me off about the "Blackmail Letter" request is that it was not clear. There was no "Meeting of the minds" So if I were to go into court, you would win everytime.
1. I requested $5,000,000. You guys would loan only 60%. Then you go on to say the 4% of the loan amount would be paid from the loan proceeds! In this black and white letter means $2,880,000.00 would only be in hand. And who knows whatever else you could have dreamed up.
Then you state that a refund must be in writing within 90 days if there is no loan commitment. From a reputable agency, this is a given. (That's if someone fell for your request and handed the funds over to you).
Then the further tick-lization continued, when you requested 3% commitment fee!
That's what you dreamed up!
(Confusion insued) ...............Is this a "Down Payment?" or what?
No commitment means, if I uncommit you keep my money, if I don't like your commitment! And you get to keep my $10,000. Because why would you request $10,000 to write up a loan commitment, with terms and conditions in the first place!
It didn't explain 3% of what? But all I could assume was 3% of the loan amount. This would be laughable if I didn't know that there are people out there paying you guys this.
So that ups it to 7% of $3,000,000.00 and I needed $5,000,000 in the first place.

This is the best part. You get the $10,000 to write up terms and conditions of the loan (am I wrong)...then you turn around and state, this amount is refundable if KFI doesn't offer you a loan!
What you are saying is...we will write the loan up first on ugly paper, then after we tell you to take it to your attorney, we will write it on pretty paper. But non-the-less it's an offer. And everyone knows that not all attorneys are the sharpest knives in the drawer.
The 2nd best part, the coup-de-grad...."The loan must close pursuant to the terms and conditions of the KFI commitment"....
Then false hopes are given(Candyland). Anyone in the industry can tell you that the only way a loan can close in 7 to 10 days only if, all the paper work is already in place. Meaning, like you said, that the borrower or broker has taken it from another lender, where the deal has gone sour, then all you have to do is, collect your high fee's and type up some horrible terms and conditions. At this point they are desperate. Like the guy up above sounded.

Let's get this clear. To question the practices of any business, is stupid not to ask the question. I am sure and anyone can tell you, in the industry, there are a lot of people starving and this is a Capitalistic society. Such as what you are doing.
I don't think I said that CB Ellis/Wakefield were committing fraud, this would be irresponsible. What I am saying, they would more than likely come in with a low ball evaluation, in order to sustain a lenders continuing trust in protecting their interest, of not to evaluate or to over evaluate.
Would I allow someone to hire their brother-in-law or business partner to do a appraisal. If you, the lender hire an appraiser, this is your brother-in-law or business partner. You receive the appraisal first don't you? That appraiser can't send it to the Borrower directly, can they?
I have written the Dept of Appraiser on numerous occassions regarding Appraiser's and their practices! I've had several fee's returned to me.
Annnnnd I have gone out and hired another appraiser, submitted my own comparables. Then this is when you discover what the first appraiser is all about! And in some cases the Lender also.

Look. The issues that I had were 1.) Asking for fee's up front 2.) Confusing retoric 3.) Demanding a borrower to close according to your dasterly terms and condition. Maybe you do have a place in this world of finance. But definately for the desparate.

There is a Usury Law and in some states, they differ. There is also a law about signing a contract and not being able to meet the conditions under normal circumstances. I don't believe that you guys have only been threaten with only 5 lawsuits. You may have settled prior. And bragging about $300 mil isn't a lot on each property of 72.
Lastly. I have run across, lenders, investors wanting in on the "Pie in the Sky" and they all differ. Not all ask for 40-50%. It's what you agree upon and for how long. So don't add this to your defense of over bloviating your fee's.

And like I said before. You guys are not the only Buzzards out there, waiting for someone to die.

Mr. Lattae, you are absolutely correct, we are not for everyone, our loans are designed to provide financing when all else fails. I would not say for the desperate, but for people who can not get conventional financing and for people who need money fast.

I do not understand what you mean by our dasterly terms, they are exactly the same as any lenders terms, clean title, clean environmentals, whatelse are you talking about. Besides that, our terms are spelled out in our commitment letter, if the borrower can not meet them they should not sign it, they should not send us any fees, and they should seek financing elsewhere. We are not holding a gun to anybodys head, you make it sound as though we take money prior to discloing our terms and fees. This is not a buyer beware situation, this is a situation where they are provided the information neccessary to make an educated decision on whether or not they should proceed with our loan.

As far as our appraisal process, this also is spelled out in plain English, we accept a disposition value which is a value based on a 3 to 4 month sale to a cash buyer. Fully explained in our commitment letter. This value is discounted from your typical market value which is based on a 12 month sale. Not only is it spelled out on the commitment but it is also explained to the borrower in words during all our conference calls.

Plain and simple, they are given everything they need to make a decision prior to any money being exchanged, with the exception of a $10K retainer fee. This fee is 100% fully refundable if the borrower decides not to sign our commitment letter, it is not even close to how you put it, a Balckmail fee. Please explain how you come to determine this is a blackmail fee, when it is 100% refundable at any time prior to a signed and executed commitment letter.

You just do not make any sense and obviously do not understand how Hard Money Lending works, since you continue to compare us to Bank Lending.

By the way of the 72 loans we closed last year, many of them have been paid off already. Most of our loans are paid off between 3 and 18 months, we are a bridge lender, people use our money for short periods of time. So in reality $300 million is quite a lot to have on our books at this time.

BIGWORM,Feb 24 2006, 11:11 AM]
By the way of the 72 loans we closed last year, many of them have been paid off already. Most of our loans are paid off between 3 and 18 months, we are a bridge lender, people use our money for short periods of time. So in reality $300 million is quite a lot to have on our books at this time.

[/quote]
If it walks like a duck, talks like a duck, is a duck.

Not for the desparate? So who comes to you that can't get conventional financing??
Is this some sort of Double Talk? I know that there are hard to place loans. Triangle cubes being forced into a round hole, but that's just a matter of locating and hunting and more hunting of a legitimate outfit that will do the loan.
People that need money fast(desparate), 9 times out of 10 go to "Loan Sharks"

So your organization takes advantage of the situation and you make them bleed their pocketbooks. Like I said prior. I did not advance to your pretty paper contract conditions. I don't have to see step 2 to know what step 3 is going to be.

You kept asking me what was I talking about. Terry would you like for me to paste a copy of the "Letter of Interest" on here for you to read?
There are a lot of people as yourself living in "Camp Fed" that spouted such rhetoric. Of course people don't have to use you, but they do? They have the "freedom of will" but they shouldn't stop and give you the time of day, but that's why they have the police, U.S. Marshall's and other officials for the protection of humanity.

Your false pretense of stating that they should not sign or send you money(mail fraud), is just a line you people use. "take this to your counsel for review" Knowing that desparate people will assume that you are attempting to protect them, so they sign.
But the reality is, you guys are protecting yourself with this disclaimer. And just so you know, the Feds don't fall for that trick.
It amazes me that you use the word "Gun" to someone's head. Is this a subliminal message, for those desparate enough to come to you?? Or are you playing to the (hopeful) audience? Of course you are.

You stated the following "you make it sound as though we take money prior to disclosing our terms and fees" Now I'm questioning your sanity. or maybe you just haven't read the "Letter of Interest" sent to me, (that's it)?

How dare you say this isn't a buyers beware situation!!!!!.........
red flag everyone.
Sorry to inform you, but this IS A BUYERS BEWARE SITUATION!......The alarm should be on 24/7 for both, Reputable Banks and LOAN SHARKS........

So you have educational classes for your borrowers to make educated decisions on whether or not they should proceed with your loans?
If you are so concern, then why do you CHARGE UP FRONT FEES!
I know why, because you don't want them to become too educated and then you have no money for your time spent in trickery.

Appraisal process spelled out in plain English, (right). If it's the English that you been spouting here within, it's called DOUBLE TALK. And as far as being explained in your commitment letter. The commitment letter is not received until the $10,000 is paid up front, right?........
You stated that it is spelled out in the $10,000 Blackmail money letter and then you send it to audio, with emotions and feelings of concern, right? And you use actual "words" Pleeasssse. did you think before you typed?.....I can't make this stuff up....you stated "but it is also explained to the borrower in words"

You say it's plain and simple......What's plain and simple is, "If it walks like a Duck, talks like a Duck, it's a darn Duck"..... So the poor souls fall for your Blackmail Letter and skips off to their hired sling shot. And then after he's charge them a thousand dollars or more to review the ugly paper copy. The attorney sends them back into the mouth of "Jaws" with possibly just maybe with a few minor changes (which are obvious) moving a dot or stretching out a paragraph...........

You wanted me to explain how I came to determine this is a Blackmail Fee....Okay here it is (this is turning into a educational class. Fraud 101)
Shouldn't I be charging you? Send me $10,000 (this is what I tell those Nigerian scam letter writing people).............

Here it goes. If someone comes to you for a loan. And you tell them. I won't give you a loan unless you give me $10,000. Then you say, I won't give you money if you don't pay another 3% prior to getting a loan, that's "Blackmail"
Okay there are better words, extortion, coercion, duress, pressure, stress, anxiety, extract, shakedown.
Do You believe, just because you get the crime in writing that it's "okay". For Example: "I'm going to kill you, but first can I get you to sign this in writing, that I told you that I am going to kill you" aka: Dr. Dovorkian

Then you go on to say "When it is 100% refundable at any time PRIOR to a signed and executed commitment letter".........what happened to your, it is fully refunded, anytime?
Hey what say you? Oh youuuu and your silly word games.

You say I don't make any sense and that I obviously do not understand how Hard Money Lending works?
I'm glad I don't make sense to you

Most Hard Money Lenders I know, yes they charge up the yang yang in points and interest, but don't asked for ridiculous, outrages, ludacrious Fee's in their pocket UP FRONT. In addition, you either get a loan or you just go away! Now I can go for something like this, even knowing that I'm being charge outrages fees later, but given the opportunity to do what I have to do and then pay you off, ASAP. With no prepay penalty of course.

You should really re-read your post, before you write another. You sound like Joran Van der Sloot.........

Disclaimer: The earth has the Buzzards to cleans the earth of decaying debris, the catfish and others to keep the bottom of the waters clean. Kennedy Funding also has it's place in the financial world of nature.

[quote=lattae,Feb 25 2006, 01:45 AM]
BIGWORM,Feb 24 2006, 11:11 AM]
By the way of the 72 loans we closed last year, many of them have been paid off already. Most of our loans are paid off between 3 and 18 months, we are a bridge lender, people use our money for short periods of time. So in reality $300 million is quite a lot to have on our books at this time.

[/quote]
If it walks like a duck, talks like a duck, is a duck.

Not for the desparate? So who comes to you that can't get conventional financing??
Is this some sort of Double Talk? I know that there are hard to place loans. Triangle cubes being forced into a round hole, but that's just a matter of locating and hunting and more hunting of a legitimate outfit that will do the loan.
People that need money fast(desparate), 9 times out of 10 go to "Loan Sharks"

So your organization takes advantage of the situation and you make them bleed their pocketbooks. Like I said prior. I did not advance to your pretty paper contract conditions. I don't have to see step 2 to know what step 3 is going to be.

You kept asking me what was I talking about. Terry would you like for me to paste a copy of the "Letter of Interest" on here for you to read?
There are a lot of people as yourself living in "Camp Fed" that spouted such rhetoric. Of course people don't have to use you, but they do? They have the "freedom of will" but they shouldn't stop and give you the time of day, but that's why they have the police, U.S. Marshall's and other officials for the protection of humanity.

Your false pretense of stating that they should not sign or send you money(mail fraud), is just a line you people use. "take this to your counsel for review" Knowing that desparate people will assume that you are attempting to protect them, so they sign.
But the reality is, you guys are protecting yourself with this disclaimer. And just so you know, the Feds don't fall for that trick.
It amazes me that you use the word "Gun" to someone's head. Is this a subliminal message, for those desparate enough to come to you?? Or are you playing to the (hopeful) audience? Of course you are.

You stated the following "you make it sound as though we take money prior to disclosing our terms and fees" Now I'm questioning your sanity. or maybe you just haven't read the "Letter of Interest" sent to me, (that's it)?

How dare you say this isn't a buyers beware situation!!!!!.........
red flag everyone.
Sorry to inform you, but this IS A BUYERS BEWARE SITUATION!......The alarm should be on 24/7 for both, Reputable Banks and LOAN SHARKS........

So you have educational classes for your borrowers to make educated decisions on whether or not they should proceed with your loans?
If you are so concern, then why do you CHARGE UP FRONT FEES!
I know why, because you don't want them to become too educated and then you have no money for your time spent in trickery.

Appraisal process spelled out in plain English, (right). If it's the English that you been spouting here within, it's called DOUBLE TALK. And as far as being explained in your commitment letter. The commitment letter is not received until the $10,000 is paid up front, right?........
You stated that it is spelled out in the $10,000 Blackmail money letter and then you send it to audio, with emotions and feelings of concern, right? And you use actual "words" Pleeasssse. did you think before you typed?.....I can't make this stuff up....you stated "but it is also explained to the borrower in words"

You say it's plain and simple......What's plain and simple is, "If it walks like a Duck, talks like a Duck, it's a darn Duck"..... So the poor souls fall for your Blackmail Letter and skips off to their hired sling shot. And then after he's charge them a thousand dollars or more to review the ugly paper copy. The attorney sends them back into the mouth of "Jaws" with possibly just maybe with a few minor changes (which are obvious) moving a dot or stretching out a paragraph...........

You wanted me to explain how I came to determine this is a Blackmail Fee....Okay here it is (this is turning into a educational class. Fraud 101)
Shouldn't I be charging you? Send me $10,000 (this is what I tell those Nigerian scam letter writing people).............

Here it goes. If someone comes to you for a loan. And you tell them. I won't give you a loan unless you give me $10,000. Then you say, I won't give you money if you don't pay another 3% prior to getting a loan, that's "Blackmail"
Okay there are better words, extortion, coercion, duress, pressure, stress, anxiety, extract, shakedown.
Do You believe, just because you get the crime in writing that it's "okay". For Example: "I'm going to kill you, but first can I get you to sign this in writing, that I told you that I am going to kill you" aka: Dr. Dovorkian

Then you go on to say "When it is 100% refundable at any time PRIOR to a signed and executed commitment letter".........what happened to your, it is fully refunded, anytime?
Hey what say you? Oh youuuu and your silly word games.

You say I don't make any sense and that I obviously do not understand how Hard Money Lending works?
I'm glad I don't make sense to you

Most Hard Money Lenders I know, yes they charge up the yang yang in points and interest, but don't asked for ridiculous, outrages, ludacrious Fee's in their pocket UP FRONT. In addition, you either get a loan or you just go away! Now I can go for something like this, even knowing that I'm being charge outrages fees later, but given the opportunity to do what I have to do and then pay you off, ASAP. With no prepay penalty of course.

You should really re-read your post, before you write another. You sound like Joran Van der Sloot.........

Disclaimer: The earth has the Buzzards to cleans the earth of decaying debris, the catfish and others to keep the bottom of the waters clean. Kennedy Funding also has it's place in the financial world of nature.

[/quote]


DAMN...Bigworm just got owned

You are a brilliant man, Lattae, you have exposed a sinister plot that we have been conspiring for 20 years.

Truth be told, you took our letter of interest and analyzed every word, every detail, until the facts were spelled out before you. We will lend you the desired amount of money, providing you agree to our terms, if you do not agree to our terms then we will go our seperate ways and any money you have paid us will be refunded. You are a very clever man...

Again, if you do not like our terms, or if you can not meet our terms, then you do not have to take our loan. Simple, not rocket science, no coercing, no blackmailing, no fraud. I'm not really sure where you are taking this.

Please, post our letter of interest, not for me, I see them every day, but for those that you are trying to propogate your lies to. I'm really not sure why you are trying to battle me, you have not posted any facts about my company yet. You have posted feelings, conjecture and slander, but still no facts.

The real players in the commercial industry have been using us for years for their hard money deals, they know who we are, what we do, and that we perform when other lenders do not. Some of these companies are the largest and most repected brokerage houses in the country, companies that you have not the inclination nor the where with all to compete with. I'm not saying that you are not good at what you do, you are probably very good and very successful. However your personal vendeta against my company gives off a very amatuerish and boorish persona about you.

WHATEVER......

I am not battling you and there is no VENDETA. I'm just in Awe of your OUTRAGES fee's. No battle here? Sorry if you feel battle on.

Did you read this poor souls new post?
We did trash his post and turn it into Sh*t.
I apologize to him immensely. All he wanted simply is to obtain a loan.
He wasn't interested in me venting my shock experience, so that he can avoid
paying outrages UP FRONT FEES.

I do not pay up front fees!
I will pay some traditional costs, that are not out of the norm though.
I know that you are HARD MONEY LENDERS!
I KNOW WHAT HARD MONEY LENDERS DO!
I did contact CB Ellis and they told me that they prepare one appraisal for
a Borrower directly, that most Lenders will not accept.
At a cost of $6500. Then they prepare one for the Lenders???? Why is this?

Tell you what Terry. Loan me your Funds.......But I do not want to pay Bizare and nonsensical up front fees! The Sellers are already requiring a "Good Faith" deposit. You don't need this request.
The sellers are also requesting a "Approval Letter" which is normally a process not denied from by lenders AT NO CHARGE. If you are so confident, why charge for a letter???

As far as your terms and conditions......bring them on! If you are so confident that others have lived in comfort, with your terms and conditions. Present them to me.
I will pay you your desired fees at the close of escrow. Deal?

Very quickly - bit of advice

Unless you have years of building/development/or related experience find a piece of property that is not in the bahamas and start there. I have never lent money to anyone in the bahamas and am not sure what banks do or do not lend there. My advice (if you live on the mainland) is to find something a bit easier to start with. You will prob not recieve financing for this project with no track record - too far, too big, too inexperienced. If it was easy to get a private investor to lend you 20M or whatever it is there would be a lot of idiots out there acting like developers thats for sure! Experience is key, no one cares if the project is a "cant miss" 1000% return, without the right people no one is willing to take that risk - would you? Play devils advocate for a min, what do you bring to the table on this deal other than having a contract on the land? You are good at stirring people up, I must say. I have worked deals through Kennedy and others similar and I can understand your disgust. Truth is Kennedy does make a lot of money on "fee income" deals that never get done but it is fact that they do fund some of them or they would not still be in business. Stay away from those guys, Im with you there. Find something more obtainable - from one up and coming developer to another I offer my advice. Good luck

We always offer the client to place the commitment fee in escrow if they prefer. There is no problem with that. It is another way we provide flexibility to the customer.

I have just one question for you though, since it is the borrower who really matters in this. You have a client who comes to you with a project they have been dreaming about their whole life. It's a solid project with tons of value but... Let's say they need $25 million and because they have poor credit, no experience, no seasoned funds, or whatever the case may be that a conventional lender will not provide them financing. And let's say because they have been searching for financing for such a long time they now have only 1 to 2 weeks to close or they lose their contract to another bidder. Are you going to say to them sorry I can't help you, there is not a lender in the world who can get this done for you, or will you swallow your pride and say, I have an option for you, it's expensive, but they can do it and let them decide if this is what they want to do. I think it should be their decision not yours. And in reality you are selling yourself short as well, since even only 1 point on this deal would net you $250,000 as the broker. Is there a Bank out there that could make that could offer you that.

That is who we lend to, that is the scenario I see everyday, these are the people who come to us, who need us. If your client can get cheaper financing then they have no need for us. We charge the fees we charge because of the very nature of the type of deals we do, they are high risk loans with high risk borrowers. We have to protect ourselves and our interests in the event the borrower or the loan is not everything it was promised to us to be.

People come to us constantly trying to get something for nothing, our commitment fee seperates the real deals from the fake deals. The people who are trying to fulfill their dreams and the people who are trying to con us out of our money.

Think about it, if you are looking for a $25 million loan and can not pay us 1% of that amount then how do you expect to make our payments every month. It is very easy for someone to pull cashout of their land with no cost to them and then disappear to the carribean never to be heard from again. And it is also very easy to take our commitment and shop it to other lenders in order to have them shave a point here or there and get us all dressed up for the prom only to stand us up at the closing.

We lend our own money, not like a bank who lends the money of the people who bank there. We are not insured for our money the way a bank is insured for their money. It is the process that has been determined to best protect us from losing money in the event of the aforementioned scenarios.

I'm sorry for accusing you of trying to battle with me, but your words give off a very angry impression to me. I would like to see your deal, have you place everything in escrow until closing and show you first hand what we are made of. I will tell you right away if it is a deal for Kennedy or not, I don't want to waste your time any more than you would want to waste mine.

Like I've always said, you may not like us or our process, but if you want it done we will get it done. By the way, even though we ask for upfront fees, I think you will find us to be the cheapest hard money lender out there.

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NO UPFRONT FEE'S

Thank you for your invite to pay you guaranteed fee's up front.

I am in no way angry. I am a professional, my views are soley from a professional point of view.

And I am sure you don't have a problem with the title company holding fee's for you. But I might add that this is a step in the right direction, even though, with loopholes written in your contracts, you maybe able to go to the title company and confiscate the large funds from the title Co, with your attorney's in tow.
But the fee's you request is still not necessary, because the seller's are already requiring a deposit!
The commitment is not to your company, but to the "Sellers"
It's not all about Kennedy Funding.

We in our state can not charge UP FRONT FEE'S. Regardless of how many times we get dressed up to go to the prom.
And yes, I have heard of people borrowing a million dollars on their properties and not repaying. But this is where the appraisal the borrower pays for comes in for your benefit, am I wrong?
So your reasoning does not justify the means............tell me where I missed out?

You have the "value of the property" for those type of unscrupolous characters. Don't say "We don't want the property back either".....In your case you not only get the property, but a good size "booty." a 40% cushion.....You have a "twofer" a 2 in 1 baggy, your company has found a niche to fill.

All of your defenses for justifying "UP FRONT FEE'S" still does not explain WHY the money goes to YOUR COMPANY.
Some Hard Money Lenders have a lower loan to value, requiring the borrower to come up with a larger "DOWN PAYMENT" Higher Interest rates etc.......but you guys have both.
You guys want salary money?? No excuse me. "Palimony" dumped at the prom money?
Please school me on this?

Brokers, charging points? Are you attempting to present that the broker is responsible for your large fee's.........The last I look brokers charging a fee isn't an illegal act and certainly dose not even come close to the funds that your company charges and is unrelated to this discussion at hand.
Stop trying to muddy the waters and evade the highlight.


In the event the borrower or the loan is not everything it was promised to you.....
You answered the question when you said "If a client can get cheaper financing."
If anyone that can go to your company and pay those "High A** Fee's"...they can go to a conventional lender and offer to them to put the Large sum of money you guys ask for and get a much safer deal..!

The "Real Deals" you say.....most borrowers don't just helter skeltery, go out and process a lot of paper work, put up down payments and take off!
99.9% of the humans on this earth want something for nothing (a good deal).
I don't know what you mean by "Fake deals".........what you are saying is "The High Rollers"..........I've come to believe that these are just those that don't realize their options!

Con Kennedy Funding out of money??
Where does your due dilligience come in? Haven't you had the property investigated? Con you how??? So you guys try to beat them to the punch, is that it.......................School me once again.

Because a borrower comes to you that can not pay you 1% doesn't mean that they can't pay back $25 million dollars back..........it means that they don't have $25 million dollars! and may need the 1% to help pay back the $25 million dollar loan!??

You got me here, with someone taking your commitment and shopping it????
Except you keep your terms etc hidden, until you receive MONEY and then throw the ropa dope on them, so they will hesitate to run like hell somewhere else. HA!

You are not insured? You have the property as your Insurance?
"Protect us from losing money in the event of the aforementioned scenarios".....I like that. Sounds like something from a Wayan's Brother skit.

Now don't think I'm battling with you. LOL you're too funny.

Good Luck Terry.................but I can't hang with even putting Humongus sums of money in an escrow, that is solely designated later to be paid to your company, that dosen't goes towards the seller for the purchase of the property.

So the real problem is you just do not like our process. That is fine, I was under the impression you thought we did not provide the loans we commit to providing.

Like I said, you are entitled to not liking what we do, most people do not like paying any fees at all, up front, back end, in the middle, etc. I have no problem with you if it is only our process you have a problem with.

Like I said many times, we exist for a very specific niche of the commercial lending arena. We have provided many loans for clients who have turned our money into very successful ventures for them that otherwise would not have been available to them. They shopped around, did their own due diligence and determined we were the best solution for their needs.

The things you say about us are a direct reflection of those who borrowed our money, making claim that they were duped into working with us and paying our fees. When in fact it was determined by them that our loan provided them the best opportunity at the most cost effective method for their needs. Kennedy Funding can not make loans to people who do not want our loans. You seem to keep forgeting that one simple fact. They have many Hard Money options available to them and yet we keep funding loans.

Lattae, I am sorry you can not understand why our process is the way it is, we could go back and forth forever and I am certain we would never see eye to eye.
And we never have to, but it is hard for me to sit back and hear someone claim that we are crooks, or that we do not perform, or that we con people or lie to people. It is just not so, we are expensive and have specific guidelines in place that are clearly defined at all phases of the process. If there were better solutions than what we offer to those who borrow our money then they would have gone with them, and we would not have been in business for over 20 years and would definitely not have been and continue to be so successful.

You could contiue to be the protagonist on this issue if you would like, clearly it is a case of your not understanding the nature of our business and formulating your own opinions. Again those who know us, the real players in our industry, see the benefit we provide, they may not be happy with the way we structure our loans, but they know that we will get things done. Simple as that.

Good luck to you Lattae, I wish you well. I should also thank you, this thread has raised alot of business for me in the past week, I guess people will continue to formulate their own opinions regardless of those who try to defame our company.

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YOUR 15 MINUTES OF FREE COMMERCIAL ADVERTISING

Ohhh so it's just now you are realizing it's your process that I contested? Interesting.
I think that you have been playing to the 546 viewers that have peered at these posts, in the past week.
There's a limit of 5 advertisement per month. And you used this entire process to get your word out. I realized that days ago. When you began making outlandish statements, that were incomprehensible. "GUNS TO PEOPLE HEADS" "NOT A BUYERS BEWARE FUNDING SOURCE" etc.

It appears that you enjoyed this whole process. Although you claimed to have receive a lot of business???? I doubt this. Maybe a lot of Looky Lou's.
You have a high turn over at Kennedy (loan officers) I don't know what you people call yourselves? And I personally know of some of your rejects, that sorta kinda uses similar names of that of Kennedy's? In fact I thought for a minute one of them was on the lam.

Having another Joran Van der Sloot moment, are you. You state quote..."They shopped around, did their own due diligence and determined we were the best solution for their needs." How is this possible, when you don't tell them anything, until they spill their pocketbooks?? ......Oh I get it. It's those Silver tongues of yours.
I can tell that you haven't been with Kennedy for 20 years. Probably only a month.

Thank you for considering me though and emailing me your advertisement. But I won't be using your services, unless you tell me that you will not charge me or my clients "UP FRONT FEE'S" then we can talk. Not until then will I consider using your company's services. I will even consider sending you my overflow of clients to you, as a last resource of course. But not my "Real Players" in the industry. They only trust us.
E me your brokers package. And anyone else reading this post.

Since you have spouted about Kennedy Funding outstanding records, to everyone.
I would like to take this time and let everyone know that I have been in business for 26 years. And if you have to consider Kennedy Funding as the only alternative. Now you have one. My company can match anything they can put out. (and we are always considerate of the borrower's awareness policy) unlike Kennedy.

65% LTV. Bank Statements. 400+ FICO scores and a description of the project. And we can close in 7 to 10 business days, if you have all your paper work in order.
email me.

I'm sorry. All of this began when I received from Kennedy, a what I considered a "Nigerian Scam" request..............
The Scam letters are coming from all over now-a-days.

Terry call me, when you're out this way. Will have lunch on the West Coast.

I read your posts and I have to laugh. You keep saying that people are required to pay us fees wthout knowing the terms of our loan.

THAT IS JUST NOT TRUE!!!

The commitment fee is not due until we have a signed and executed commitment in place. That means that they are looking at the terms of the loan prior to paying a commitment fee.

They have everything in front of them needed to determine whether or not they want to proceed with us. You are either confused or you just are not fully aware of our process. But in no way or manner of speaking are they required to pay a commitment fee prior to reviewing the full and complete terms of their loan.

I can't imagine anyone in their right mind would pay for anything without knowing all the details of what they were paying for, so why would anyone believe that we would require them to. Especially you, who have been in the business for a full 26 years.

And once again you are making a very bold statement about our clients, claiming that they could be duped by our "Silver Tongues". You saw the email I sent you, that deal was sent to us by Meridian Capital, who sends us deals all the time. They are one of the largest Lenders in the country, hence the "real players", if we were the crooks you claim us to be, why would they risk the reputation they have built with their clients by working with con artists as you put it.

Oh and by the way, if you could do everything we could do, why did you try working a deal with us. You claimed you received our Letter of Interest, why would you need to outsource a loan if you could do all the same things we could do.

Honestly your rants make you sound like the guy from the Ditech commercials, "I just lost another loan to Kennedy Funding".

This thread is very interesting to me, but I think we need to stop using this board to continue. I would like to feel as though I don't need the last word, but everytime you post a lie I am forced to defend myself. I would have no problem with anything you say, except for the way you try to manipulate the truth, and the slanderous remarks you make.

The problem is of Kennedy Funding the web is full, they are good to words, drawn aside of young thieves looking for a handful of dollars but the true money from these societies never see them, in how much sells only I smoke!!
They are good to finance who has the 50% of the money, they puts 50% and mortage other full!!!
Believe not me paid in any Upfront they are all traps!

I am locking this thread. I think that there has been enough discussion about the topic. If people want, they can continue their conversation directly.