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FundingEdge & Power2Fund

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FundingEdge & Power2Fund Reviews (4)

To whom it may concern, Upon receipt of the initial Revdex.com Complaint we had the filed reviewed by accounting for a refund Please understand that we spent considerable times and effort on this file and even with some of our most aggressive investors declining the loan, we were able to secure an Approval We did issue a refund to Mrs [redacted] and the check was sent out on the 23rd of August via USPS and they attempted to deliver on August 26th and left a notice, but tracking shows that it has not been picked-up USPS Tracking Number: [redacted] (see attached tracking info)I wish the [redacted] ' the best, and hope they have all they success in the future

Complaint: [redacted]
I am rejecting this response because: Attached please see the lenders offer and fees, see page 2.  An origination fee of 15 percent of the gross loan amount at closing.  Gross loan amount was 260,000 and 15 percent of that amount = $39,000. Then the 4% broker fee =$10,400 in addition to approx. $2,100 in additional fees.  THIS DID NOT INCLUDE CLOSING COSTS OR TITLE WORK.  And last but no least $900.0 for a BPO (Brokers Price Opinion) which we had to supply all the information including pictures, loan value from previous appraisal (see attached emails).   By the way April loves to use the word niche as you can tell. 
Regards,
[redacted]

To whom it may concern, Upon receipt of the initial Revdex.com Complaint we had the filed reviewed by accounting for a refund.  Please understand that we spent considerable times and effort on this file and even with some of our most aggressive investors declining the loan,  we were able to secure an Approval.   We did issue a refund to Mrs. [redacted] and the check was sent out on the 23rd of August via USPS and they attempted to deliver on August 26th and left a notice, but tracking shows that it has not been picked-up.  USPS Tracking Number: [redacted]    (see attached tracking info)I wish the [redacted]' the best, and hope they have all they success in the future.

To Whom it May Concern:   I want to take a moment and address each one of the complaints individually.   Our niche is assisting clients in soft and private money situations. We have extensive relationships with several soft money and private money lenders and investors, some with whom we...

have worked with for nearly 20 years.   We had the [redacted] file a total of 29 business days at the time we were able to provide terms from a lender, not the 4 months stated in the complaint. We received the signed Letter of Intent from the client on May 5, 2017.  We were able to work through the required documents and began speaking to lenders/inventors on the file almost immediately after receiving the LOI. We received stated terms offered by the lender on June 14, 2017.   The [redacted] paid FundingEdge a due diligence fee of $1,250 through a QuickBooks invoice, not $2,000 as was stated in the complaint. Our Letter of Intent clearly states that the Due Diligence Fee is used to cover expenses incurred with processing the loan. We spent many man hours rushing this file and preparing it, ahead of other files, for the lenders to review. We helped the client with preparing the necessary documents in order to present them effectively to the lenders.   In the event the client elects not to close the loan after the acceptance of the LOI, we apply the fee to the costs incurred. However, when the client chooses not to accept the terms offered by the lender, they can make a formal request in writing and the refund request will be processed.   We had this file in front of a significant amount of our best investors and due to the risk, the fact that it was not operational, and the perceived value, it was declined by all of them. At this point, we had to utilize a more specialized alternative source.   The [redacted] were in the middle stages of renovating their property, between breaking ground and becoming operational and income producing. When trying to establish value, the lenders look at the cost of the land and the improvements made, as well as the ability to debt service. The main objective we discussed with the client was to get the remaining improvements completed so that he could get his property operational and generating income. This would allow him to be in a much better position to refinance out once he could show the ability to debt service (make payments).   Part of the lender’s concern was that all of the funds invested in the property were in loans taken out that are essentially liability. Even still, the lender that was willing to lend on the property kept asking for as much proof of funds invested as could be provided in order to get them to amount they needed.   We worked with Mr. [redacted] to present the total of improvements made on the property in order to prove the funds invested. We had to work through the multiple receipts and bank statements to pull the amounts together to try to prove the funds he had invested into the property. Between this and the purchase of the land, the total did not come to the amount he stated on our application.   In regard to the Appraisal & BPO, when clients ask us if they should get one done to establish a value, we typically advise against it. The reason for this is that typically the lender will want to have their own Appraisal or BPO conducted by an objective company. This is common among lenders, bank or otherwise. Most of the time lenders do not accept an appraisal ordered by the client. The cost of a full appraisal is expensive and we do not want the client to have to incur this expense twice.   The conversation I had with the lender, and tried to relay to the client, was in reference to his conversation with his real estate department regarding comparables for the property. They were not certain that there would be a fair amount of comparables to help establish the value, but were willing to have the BPO done based on the improvements completed as well as any comparables they could use. It was not a matter of not being able to do a BPO, it was the validity and the availability of comparable properties. The lender was again trying to work with the client in order to help him get the value where it needed to be. The client was unable to provide the appropriate documentation to prove the amount of funds invested.   The interest rate on high risk hard money was within usury. The points charged depend on the transaction, loan-to-value (LTV), risk and complexity. Each situation is individual and you cannot base one loan off of another. Higher risk loans are more complex and typically have higher origination points. The fees were presented on the lenders term sheet and broken down. However, there was not an additional $10,000 to $15,000 in closing costs. The title company will assess the taxes, insurance and escrow fees, but they did not total that amount.   Our team spent a significant amount of time on this file and put it as a priority due to the stated time crunch the borrower was under. We were able to provide terms that allowed the client to take out the existing lienholder, who was putting pressure on the borrower, and get them the amount of funds needed to complete the renovations and get the property operational. The client wanted cash out in hand and did not want to accept the offer that would have put them in a better position to start generating income almost immediately.   We are happy to issue a refund minus expenses incurred on the file.

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Address: 1514 S Main St STE C, South Bend, Indiana, United States, 46613-2208

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