This is a word of warning to any commercial mortgage professionals thinking of doing business with Alston Ferris Capital Partners in New York: DON'T!
This company and it's "account exec", Jeff Kaye, practice a very clever deception of accepting some loans for consideration and rejecting others. The loans that are accepted go through a one or two week (sometimes less) process after which a term sheet is issued. Quoted terms are very good, but not so good that one would suspect something is too good to be true.
The particular loan in question, as reported by the broker, was not a high LTV, low net income, half vacant, special use property. Rather a typical retail property in a metro area.in other words, a loan that with a reputable lender would have a better than good chance of gaining loan approval.
Once the unsuspecting broker and borrower receive the term sheet, Kaye is on the phone daily asking for the return of the signed term sheet and the appraisal/phase 1 fees, which are to be wired to a bank account on behalf of "their" third party vendor, Eastern Realty Corp. Unfortunately, Eastern Realty Corp can't be traced to the location on their "invoice". Anthony Mazza is listed as the responsible party for Eastern.
Once the fee arrives in Eastern's bank account, all phone communications cease from Kaye or anyone associated with Alston Ferris, even with persistent daily phone calls from the broker. When Kaye can be reached by email (never directly by phone), he responds with one-line, incomplete explanations.
Finally, after several weeks of waiting an email will arrive from Kaye with Eastern's value "quote" - not a full MAI appraisal - don't even think you'll get a copy of the report for review as the reports are "restricted". No mention is ever made about the Phase 1 report.in the email, Kaye is sorry to report value came in low (sorry, he says, but no comps were used by Eastern for value) so the loan is being declined.
(Despite the broker's own supporting documentation and financial records indicating otherwise, and several conversations with Kaye in agreement with the documentation and BEFORE funds were wired), the decision is final. Aslton Ferris emails an unsigned decline letter and a copy of a one page Eastern summary of value - something anyone using online services could prepare free of charge. Again, no mention is made of the Phase 1 report.
(Subsequent to this decline, the broker reports that phone calls made to several RE offices located in the same town as Eastern report Eastern Realty Corp was widely known to be under investigation for fraudulent activity. This could not be substantiated, but casts further oder on Alston Ferris' practices).
Once the decline is sent, the broker reports Kaye does not return repeated calls.
Actions like this by Alston Ferris and Jeff Kaye continue to feed the distrust and cynicism in the commercial mortgage market fostering the Glen Garry image many brokers have of dark, smoke filled rooms with salespeople competing with each other to see how many unsuspecting borrowers can be duped into paying $5,000 for their phony term sheets. One can only hope that what's presently happening to several other phony lenders, will also happen to Alston Ferris and they will be put out of business before one more dime can be collected from innocent borrowers.
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