Eastern Capital LLC A. Joseph Tomasso CFP So many promises. So many lies. NOT A DIRECT LENDER! Internet
Gave me a terms quote, and then required over $10K in up front charges, promised fast results, direct lending. They literally sat on the paperwork for 3 months. Every week, another promise--"it's in the final stages of approval." Here's what really happened. It got lost. Someone got sick and my paperwork sat somewhere on a desk for three months and did nothing. When they did actually start processing the paperwork, it soon became clear what was going on. Not only was Eastern Capital NOT a direct lender, they weren't even a real broker. They presented my loan package to other brokers, not to actual lenders. The terms I had been given where nothing more than wild guesses as to what then would find in the market place. Well, they went through a few brokers, with repeated promises about how we were almost to close, when they did find a broker with access to conduit funding. It was real funding through Bancorp Bank, with a real terms sheet and everything. The only problem is that I could get this type of loan through a number of brokers, and I would only have to pay one broker a 1% fee. Eastern Capital was charging 2.75 points. So, after six months of lies and broken promises, I walked away from non-refundable deposit, and will do in two months and 1 point what Eastern Capital would do in 8 month and almost 3 points. The last lie from Joe, company president, came just a day before I fired the -- "we're about 3 weeks from closing." Of course, the real broker, who actually was processing the loan had just told me 45-60 days. But I guess I can't blame Joe for trying once again to string me out. After all, his lies and promises had been stringing me out for six months. Why not try it once more. His falsehoods, however, pale in contrast to Jillian, the inital sales contact. She gave me bogus information so many times that I lst count.
You might actually get a loan through Eastern Capital LLC, but it appears that you will be paying two brokers. You will never be involved with a direct lender. Absolute lies when they make this claim. Just a loan broker, one with extraordinarily high up front fees, and extremely poor service.
2 Updates & Rebuttals
Hotel Buyer
Orem,Utah,
Joe - You are still hiding behind lies
#3Author of original report
Sat, February 01, 2014
Joe,
Multiple times you and your company claimed that you were a direct lender. So clearly did I ask, because I specifically wanted to work with a direct lender, not a broker. You are not a direct lender. You did have the ability to fund my loan directly. I paid you $13K up front specifically because you claimed to be a direct lender. You lied. Scam #1.
Even then, your understanding of the hotel financing market is so poor as to be almost unbelieveable. I gave you my up-front money based on a term sheet that you gave me (which was a totally bogus terms sheet based on nothing but speculation), but you didn't even submit my paperwork to an actual lender for 3 months. Even then, you took 3 more months to get me an actual terms sheet from a lender. Total incompetance. Scam #2.
The only actual loan that was offered to me was through another loan broker. So bad was your competence, that you couldn't even find or work with a direct lender yourself -- you had to go through a third party. To put this in perspective, the third party, a reputable company, was charging 1 pt to do the loan, which basically required starting the entire documentation process over. Your company attempted to charge almost 2 points on top of that, for a total of almost 3 points in fees. Perhaps you can explain to readers why your company did not submit my loan directly to a condiut lender rather than go through another loan broker. Do the conduit lenders refuse to work with you? Let's restate your proposition. You wanted me to pay your company 2 points (about $100,000) to direct me to another company who would do 100% of the work in getting my loan completed. Scam #3.
Then, you tried to tell me that we were close to closing, just 2 or 3 weeks away. Yet, a conduit loan, like the one that you proposed, took a minimum of 60-90 days to close. You tried to entice me to sign new loan commitments and putting up another $50k in non-refundable fees by lying to me about the length of time the loan would take. It seems that you would have told me anything to get me to sign on the dotted line. After that, it would be too late for me to turn back. Scam #4.
Joe, you and your company are a rip off. Your internet marketing lied, and your staff lied from the first day I talked to them, and you lied to me directly on the day I walked away. Even if you were honest, your fee structure and competency level are not competitive. If you are serious about a commercial loan, get a real broker.
After I walked away from your company, I went through a real company, and got a conduit loan approved for 1 pt in fees with a better rate than you quoted. I took less than two weeks to do what your company took over 6 months to accomplish with a savings of over $100,000 in loan fees. That was a good day.
Joe Tomasso
Atlanta,Georgia,
So Many Promises
#3REBUTTAL Owner of company
Sat, February 01, 2014
Here we have a client that wants to make false accusations about Eastern Capital, but yet does not want to disclose his name. I will address Mr. Bruce Armstrong in this rebuttal.
Mr. Armstrong entered into an agreement with Eastern Capital to provide him financing for the acquisition of his hotel. In that agreement as in all our agreements on page 5 article 30 Syndication: "The borrower understands that Eastern Capital, LLC intends to syndicate the facility to other lenders through direct assignment and agrees to actively assist Eastern Capital, LLC in achieving a successful syndication of the facility."
Eastern Capital did exactly what Mr. Armstrong agreed to by siging Eastern Capital's agreement. Eastern Capital has a offer in their file from Allied Commercial Capital in PA., for better rates and terms that was originally quoted by Eastern Capital.
Mr. Armstrong also makes a statement that we charged $10,000 upfront fee. He failed to mention that $1,700 went to a title company to open up title, $5,000 went to an attorney for legal fees. He also failed to mention that at closing the $10,000 would be credited to the fee due Eastern at closing. Since Mr. Armstrong walked away from the loan, obviously through his own actions he forfeited the fee paid.
So, I Joe Tomasso take offense to Mr. Armstrong's inaccurate comments, and I have retained the law firm of Lorri Lomnitzer who is in the process of filing a civil action lawsuit against Mr. Armstrong.
As you can see I am not hiding behind any anonymous name I am Joseph Tomasso. And I will be happy to share any documents with anyone at their request.