There was a distressed voice on the end of the line. Could tell her heart was beating and she was out of breath Friday when she called our office. If do not close on this home on Tuesday will lose far and my money more. After she calmed down we could get more information. It was. She was a customer that is new that we have not had the joy to work with. She was prepared to put down 10 so she was a candidate for our Acquisition Loan.
Price fixes everything a favourite phrase of mine when speaking about real estate. The phrase holds true once you are currently selling a house but cannot be farther from the truth when borrowing money. Our customer learned the hard way. We could get her closed but had she called I’m not sure we could have done it. What happened was she Called before looking for the loan. We walked her and spent some time with her. We quoted her the pricing of two points at the rate of interest and a fee. We’d loan 90 percent of her buy. She continued to store and found a second much smaller hard money lender that lent her 1.75percent in fees and the exact same interest rate. Looking at pricing it was a deal that is much better so she went for it.
The problem was this Lender could not deliver. They let her know before the day although they did not have the money available. She apologized for not working with us after we spent time and begged us to help when she called us back. She lost her 5000 and what seems to be about a profit that was 35000. For her loan that equated to a savings of just 460. Hoping to get a 460 savings she lost it all. Smoke is used by lenders and mirror strategies to acquire investors. They are focused on making loans not helping investors succeed. It is based on bringing in new customers and is a turn and model. Rather than what actually matters like connections reliability and service new investors concentrate.
In the last five weeks we have closed two loans at which we refinanced other money lenders. In both The debtor cases had more time on the loan but they were not any Comfortable with their creditor and wanted out. We are Pleased to jump in Our customers are supported by hand but it is important to comprehend that chasing rates In both instances ended up costing them large. They had to cover and to a new set of penalties Closing costs to escape the loans. In both cases Money lender ran though they committed to funding the repairs. And it was two different money lenders.