I wish to inform the public that making a decision to use Resurrection Financial and Lurton Lipscomb could prove to be hazardous to your financial health.
I found an ad on www.loopnet.com from a mortgage broker claiming to have funds for commercial deals. I had found an apartment building I wanted to make an offer on and was looking for financing. I spoke to Mr Lipscomb, explained my deal, sent him info and he issued me a commitment letter. With that in hand I flew to the location of the property, inspected and liked it. Told them I had a lender who was interested in the deal and Lurton helped me to put a contract together based on the terms he said he could deliver on.
Then my nightmare began. He told me about his upfront due diligence fees. I told him that although I understood paying for 3rd party reports it had been my experience in the past that lenders who focus on upfront fees dont close loans. Mr Lipscomb is a salesman. He explained how he work and so I did send him a fee, although reluctantly. I then sent him every item he requested on the application submission sheet he provided. He told me he had everything he needed and would contact the appraiser.
I informed seller and we waited and waited. When days went into weeks Lurton informed us that the appraiser had "changed his mind" about doing the appraisal. I had given him the name of an appraiser the seller said did a lot of the appraisals for banks in the area and was well informed about how to comp things out. Lurton never called that appraiser.
Seller was an Investor and wanted to talk to Lurton to see if he was on the upside. She did and we both were convinced that he knew what he was talking about. What bothered us both is that he was dragging his fee about ordering the appraisal.
I finally ended up calling a few and referring the one the seller had referred us to to Lurton.By now we are weeks into this process and the seller is having a hard time feeling he can close. Lurton refused to talk to the seller. And when I called him, it took him days to get back to me. He was prompt in calls mostly when we spoke about me sending him more money.
I told him I would mail him a check. He gave me his address. I told him I had a problem dealing with a lender who didn't have a physical address, only used the internet to do business and his main phone was a cell phone. However when I did mail him a check it was returned undeliverable. I inquired and found out his address is the UPS store. Spoke to attendant and she confirmed he had a post office box there and the reason he didn't get my mail was I didn't include the box number. Lurton told me repeatedly that that was his physical address and he didn't know why the woman at UPS said that. Well, she even gave me his post office box number.
By the time I got appraiser in place seller had decided to move on and sold property to someone else. So I lost my due diligence fee, time, cost to fly and see the place, etc. I told Lurton that I was the only loser in the deal; seller sold building, he had my fee. I felt that since I had experienced this loss the least he could do was work to close on another property for me and discount the upfront due diligence fees. Well he wont work on a deal unless hes paid the fees first.
I told him "dont you make your money at closing? These are multi million dollar deals I am bringing you and all you care about a few thousand dollars due diligence?" I guess he does because he wont work unless you are willing to entrust him with your hard earned money with NO guarantees from him if his negligence costs you your deal.
I have since moved on to a local lender for my next multi unit deal and guess what? No due diligence fees. Only appraisal, credit reports and environmentals if deemed necessary. Standard closing cost fees apply.'
I told Lurton "I didnt pay you to try to get me a loan. And you didn't order any appraisal so I know you didn't spend my money on any legitimate fees. It shouldn't cost a customer thousands to have someone try and get a loan. People pay fees for results."
I would suggest that if you need a loan, find a lender who has a physical address, has some staff, returns phone calls and does not require you to pay them and they still dont have to work. Anyone who charges a fee for their services should be held accountable for the delivery of that service and should return anyone's money who does not receive the service.
Lurton didnt close my deal... So what exactly did I pay for?
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