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| Michael Martin Capital Source Lending Keith Robertson of 12 Stone Consulting Financial Fraud, mortgage fraud, deceptive use of escrow and failure to r |
| 19th of Dec, 2011 by User460101 |
****DO NOT DO BUSINESS WITH THESE PEOPLE**** They are dishonest and use deceptive business practices to promote their Real Estate business. They defrauded a client of mine out of a $10,000 refundable commitment fee for a Re-finance (cash-out) loan on a Multi-Family property. The loan amount was for $1.1 Million dollars and the broker (Mr. Michael Martin) asked for a $10,000 refundable deposit and closing was to occur within 30-days. Mr. Martin was introduced to my client(s) via his partner and fellow mortgage broker (Mr. Keith Robertson). The client had to come out of pocket several times for expenses related to the Refinance loan all the while receiving false promises of a loan. Each time the client contacted (Robertson) he would promise the closing in the coming week. This went on for more than three months. The transaction begun shortly after an introduction in Early June and continued until a (certified) termination letter and refund demand was sent around October 23rd, 2011. Each time (Martin) was called, he would direct the client to call Robertson but yet the commitment letter was issued by Capital Source Lending (which Martin is the Chief Executive Officer). The commitment letter was prepared on July 30th and almost three months of excuses followed. In a phone call with Martin when the client managed to track him down (around October 13th, to demand his refund), Martin became irate and heated and stated, "sue me" on the phone because "he was not returning the money". He later called the client back to say "give him one more week until Friday and the following week there was no additional contact. A week later, the client sent a demand letter, notarized and certified to Mr. Martin requesting the refund as outline in the commitment letter the client received. During this time, I placed a call & email to Mr. Robertson and in a very nice manner requested that he work with Mr. Martin to get the money back. Finally, Robertson grew agitated with me and didn't like the threat of a lawsuit and him being implicated in a scheme. To my knowledge, Robertson did nothing to assist with the return of the refundable commitment fee and this has just been another example of a "pay to play scheme" involving phony commitment letter from phony lenders who have no intention of funding a project nor who have any capability to do the same. Please do not do any business with Capital Source Funding and Mr. Michael Martin or his rep/broker/friend Mr. Keith Robertson of 12 Stone Consulting. We believe they work from their homes out of the Virginia area and will use all means necessary to litigate and pursue them for damages.
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From the broker Keith Robertson who brought the deal to CSL
(itsabigdeal (James) — Houston Texa)...IS A LIAR !!!
In my response to this posting I must say now I understand how it feels to be abused, it is truly shameful that the owner of this site would allow unsubstantiated claims to be presented in this manner on their message board. It is amazing to me now that any fool with a computer can take a piece of fiction and present it as fact as you see noted in the posting, with the
hopes of bringing damage to another person. I have been in business for over 15 years and has never had my character or business ethics questioned before, but now I will attempt to explain the truth surrounding this this transaction.
Mr. K James (itsabigdeal (James) — Houston Texa) contacted me regarding a cash out refinance of a apartment complex, Initially I stated we could assist him in this process but once we engaged we realized there were certain situations
which made this loan unbankable due to the fact borrower didn’t own the property at that time.
If anyone out there knows how to provide a refinance cash out loan where the borrower doesn’t own the property please contact me to explain how this is possible.
A decision was then made by the principle borrower to move forward with the purchase of the property independently from me. Once this was done then I was asked again to assist them with a the refinance of the property.
Now let’s look at the outline of what was asked.
1) The client injected into the purchase as a down payment was $10, 000.00
(In today’s market purchasing an apartment complex you will need between 15-30% down not the 2% this client put down in this transaction.)
2) Owner of the property held a private note $540, 000.00.
3) Client then requested a cash out refinance loan for $1, 000, 000.00
4) Please note the borrower would receive $500, 000.00 cash out
Where would this type of loan be available in any banking situation in the US? The answer is nowhere. With that being said I had to seek funding outside of the banking industry and this is where Capital Source Lending came into the picture. Michael Martin (CEO Capital Source Lending)is a private lender located in VA, anyone who is reading this post please take the time to look for any other negative complaints on this company. I did this before I introduced CSL to the
client. You will find what I found when I did my own research on CSL. NOTHING
Mike reviewed the deal and decided to accept it because of the historical occupancy rate of the property at 95% and the LTV would be at a estimated 55%. So from a private lending stand point this would be an ideal loan to fund, especially with the
fees they were going to charge. CSL presented an initial commitment to the client which they agreed to see the heading below.
Capital Source Lending, LLC (CSL) “Lender” and on behalf of “assignee” and partnering with a Finance Division (“investor”)
is pleased to offer a “conditional” commitment financing for working capital purposes, construction finance and business establishment services in this letter to (“Borrower”).The “Final Commitment” letter supersedes all prior correspondence, commitments, and oral and other communications relating to financing arrangements between Borrower and
Lender.
Here is another area of this document I want to present to you for your review as well.
(11) Commitment Fee:
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Simultaneously with the acceptance by the Borrower of this Commitment, a refundable Commitment Fee equal to
$10, 000 will be due the Lender and/or it’s affiliates, to be retained by the Lender as compensation for the securitization of a bank instrument
These Fees will be due after this commitment letter is executed and approved by
borrower. (If Borrower fails to close on this program at its own election, the commitment fee is non-refundable (but
funding fee is refundable minus 30% for instrument processing due diligence, and underwriting cost associated with this loan regardless if it closes)
(12) Instrument Funding Fee:
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Client agrees to pay a “funding fee” to cover the expense for a bank instrument that will be used to obtain loan funds on behalf of client. If lender does not perform the funding is refundable minus a $50, 000 processing cost. (which will be due after closing). If Client elects not to proceed to loan after final underwriting then client understands a 30% fee is due (instead
of the 10K) and balance will be refunded to client.
Commitment Expiration:
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This commitment shall expire on August 6th, 2011 unless prior thereto either extended in writing by the Lender or
accepted as provided below by the Borrower
This was the initial commitment and they never provided the 10K as outlined but time went on, there was still daily communication concerning the transaction. There where other delays but the client knew of the delays to the point Mike had a conference call with the client’s attorney and explained the delays. Once the loan got to a point that looked like as if it was ready close Mike requested the 10K. Mike then had a additional call with the attorney and again there was no mention of a problem concerning move forward in the transaction. There was an additional delay and the client decided to cancel the
loan (9th hour). The problem was by that time the instrument had already purchased and funding was now possible but it turns out the client had engaged with another funding source (which didn’t close their loan). Now there was
strong communication on both sides at that point, I talked with Mike and he agreed to return 5K immediately and then replace my client with one of his own because the 1MM had to be repaid then at that point pay the remaining 5K to the client as it was already in process. But the client decided not to accept the offer at that time. Then threats were made to Mike so he removed that offer off the table and decided to operate under the letter of the commitment and by doing so he didn’t have to return the commitment fee. And we now find ourselves at this point a joker broker with a computer and a opinion of self righteousness. Let me say that if there are any question concerning this transaction contact me personally at that time I can give you more details.
As you will note I never presented the clients name nor have I tried in any manner to defame him as it has been done to me. |
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