OfflineJust thought everybody would like to see that people on the other side of the fence are being stupid and greedy.
It's been an extremely busy week in the world of hard money lending. More importantly, it's been nothing short of a frantic week for others. Some disturbing but expected news is starting to trickle through the newswire concerning several hard money lending firms, and there's nobody smiling as a result of what's been written. The reality that these firms and their investors are facing represents the darker side of private finance - an example of people in leadership positions behaving badly.
On Monday, March 14th, it was reported that a notice has been filed to revoke the license of a well-known hard money lender and investment sponsor out of Las Vegas, Nevada. CM Capital Services, formerly known as Consolidated Mortgage, is reportedly insolvent despite the fact that it is currently managing a large portfolio of assets for its investor clients. Investors are furious with the way that the firm has managed the assets, especially the fact that they reportedly have charged exorbitant fees to do so during the process. According to audited financial records that were provided, the company could have actually been insolvent as soon as 2009. The full release is available from the Las Vegas Review-Journal: Officials Post Notice of Intent to Revoke Lender's License
In a follow up story more details were provided about the firm's actions with regard to foreclosed real estate and the handling of expenses related to it: Henderson Lender Mum on Licensing
The news of the week actually came from Arizona where it was reported that well-known hard money lender Remington Capital had its Scottsdale offices raided by the FBI. No details were given about the raid as it was conducted under a sealed warrant, but the firm has been accused of accepting fees without any intent to obtain loans for their clients in the past. For the full release, visit the The Arizona Republic: FBI Raids Scottsdale Financial Firm
Always Looking to Acquire Houses | Always Looking to Amaze Investors
CM Capital being in huge trouble about 10 months ago. I'm surprised they lasted as long as they had as they were caught doing illegal things; and getting money to pay for it by doing illegitimate loans. They were trying very hard to get us to do PMLs for their 'clients' and when I did research I found about their troubles. Just ANOTHER area to be careful in when investing.
I had heard rumors, 2nd and 3rd hand that Remignton had gotten some bad press as of late. Rumors are rumors and I take them with a grain of salt, but this time I listened and it was more than a pinch...Jan
Prompted by complaints that some former clients paid Remington fees for loans they never received, the FBI came to our offices on this week to collect information about our business practices. We, of course, cooperated in every way and intend to continue doing so, confident that, when all is said and done, any and all concerns will be put to rest.
We are proud of the way Remington does business. Although we never guarantee funding because we are not a lender, we take great pride in the fact that we have helped hundreds of business owners and developers secure over $5 billion in funding during the 18 years we have been in business. Even where we were unable to secure financing, we have impressed our clients with our professionalism and efforts made on their behalf.
Our hope and expectation is that this situation will be resolved quickly and factually. In the meantime, we will continue serving the best interests of our commercial real estate and business finance clients with dedication, integrity, and transparency.