In December my client and I approached KSI Capital about financing a project down in the Dominican Republic. Within a couple of days KSI came back with a letter of intent and required my client to send in $10,000.00.
After we did that KSI then issued a commitment letter subject to final loan to value approval on the subject property. At this time we were required to send an additional $50,000.00 which I fronted for my client. As part of the final closing procedure Henry Haskell the president of KSI requested a site visit for which we paid for.
After he came back they spent a couple of days requesting more and more information which we supplied. Finally they came back with an offer far below what was required to payoff the exisitng loan. They advertise on the their website all international loans must be atleast $3,000, 000.00 in this case they came back with a $1,800, 000.00 loan amount, that they knew would not be possible for my client to accept.
At this point I began the process of getting back some of the money. KSI made myself and my client sign a letter indicating we would not take action against them.By doing this KSI sent us back $40,000.00. They still pocketed $20,000.00 and an all expense paid trip to the Dominican Republic.
The Hard Money world is a tough business, but it is companies like KSI Capital that give this business a bad name. KSI Capital stole our $20,000.00 and the cost of the trip to the Dominican Republic. It is just that simple and these upfront fee collectors should not be allowed to get away with this.
Do not send your money to these people!!! You will be sorry!!!
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