We applied for a hard money mortgage loan construction loan. They asked us to sign a document called Letter of Interest. In that document, there was a cancellation fee of $144,000. We signed it because I wasnu2019t going to cancel. We also paid them $1,950 for an appraisal, which is very high. We asked them total of 6 times though emails and phone calls to give us a copy of the report, but they refused, even though by law, they are required to give a copy within 3 days of receiving it. We never cancelled the loan and we needed the loan. They couldnu2019t deliver. They said it was because we didnu2019t have the Occupancy Certificate. How can we get that when we have not finished the construction? Talking to other private lenders, we found out they have the worst reputation and are known for bait and switch tactics and not being able to do large loans because they canu2019t raise big money from their investors, so they use excuses to not do the loan and attempt to extort money in the lieu of hefty cancellation fee. Their attorney Pdedam Nioofar, would quickly will send you demand letter for 4% of the loan amount. There are complaints about them on the internet and the State of California has fined them $35,000 for unlicensed activity. Stay away from these people!
26901 Agoura Rd. Suite 250. Calabasas Hills, California USA