Complaint Review: Charter House Capital - Atlanta Georgia

I am very intrigued by how many borrowers and brokers who think that there are lenders out there who do not charge up front fees. When I tell them about the up front fees on our loan programs, they say things like: "Reputable lenders don't charge up front fees". No up front fees, is how it is done in the financial world". "Upon approval of the loan or letter of commitment then my client will pay all the fees". I have been in this business for quite a long time and I have heard this, countless times before. It appears that there is a "myth" out there. I'm talking about the "Mythical Lender". You know who they are. They are the lender that does not charge the borrower one dime in up front fees to close their loan. I have asked borrowers and brokers countless times, who is the lender that does not charge up front fees and no one has ever given me an answer. The truth is, that they do not exist. But, maybe you would like to be the one to prove me wrong! What is actually happening here is quite simple: There are a lot of borrowers with no money for fees who perpetuate this myth, because they want lenders to give them a free ride. Lenders have costs to underwrite a loan, do a site inspection, their own appraisals (not yours) and a lot of other due diligence. There is also considerable cost in blocking or setting aside the money to fund your project. Only about one in ten loans submitted to a lender ever closes. Should the lender bear all of these costs for the nine borrowers who thought they had a good project, but failed to prove for reasons too numerous to mention that they could repay the loan? Do these borrowers with a dream deserve a free ride? All reputable lenders charge up front fees that are refunded or credited back at the closing of the loan. What would be the purpose of paying fees at closing, only to have them refunded minutes later? I have often wondered that if what these borrowers and brokers say is true, why are they contacting me? Why are these borrowers and brokers not contacting that "Mythical Lender" who doesn't charge up front fees? I'll make it real easy for you. Again, I say they do not exist! Borrowers and brokers have been dreaming, because as I said earlier, they have no money. They may indeed have a great project, but they have no money. Oh sure there are a few borrowers out there who might have money, but they have heard this "myth" so many times that they think it is true. If it is true, why aren't they closing their loans with this "Mythical Lender? Please prove me wrong, I beg you! Please tell me who this "Mythical Lender" is and I will send all of my business, through you to them! In fact I predict that if you share with me their secret name, location and phone number, that I will help you become the wealthiest broker on the planet in a very short period of time! I believe a further explaination of what due diligence means is necessary. Over the years, the term "due diligence" has come to mean different things to different people. Internet rhetoric and misinformation on who pays for this service, has caused borrowers to waste time, effort and eventually loose funding of their projects. Due diligence is not appraising. Rather, financial due diligence is the process conducted by an objective third-party to identify and quantify the risks and other relevant issues associated with real estate transactions and financing. The process gives lenders a clear picture, not just of valuation but also of cash flow and cash-flow preservation. It also creates a detailed analysis of each project's ability to perform in both expected and unexpected market and financial conditions. Most importantly, a complete due-diligence report provides solutions to mitigate potential concerns of a lender or rating agency. However, despite the common misperception among borrowers that a lender's request for this information is merely a precursor to backing away from a deal, lenders recognize there is no such thing as a risk-free transaction. But to have a comfort level with the transaction, they do need to be assured the risks are identified, understood and ultimately mitigated. For that reason, lenders increasingly are turning to experienced due-diligence providers to confirm a particular asset can cover its debt service and to provide recommendations to address any potential concerns. At this "Due Diligence" stage, they complete their legal, accounting and business review in order to obtain confirmation of all the information collected in previous steps. Lenders typically require an independent opinion with respect to these assumptions and have you pay to have a study of these conditions performed. Should you decide to move ahead with this kind of Funding, the Funding Institution will devote several weeks or months to establish funding. They will not work without compensation and will request a commitment to cover their due diligence expenses and/or on-site visit. Part of the rationale is to protect themselves against fictitious statements or documents provided by a client that would destroy a successful funding scenario or a possible decision by the Client to look elsewhere after several weeks or months of work on the part of the Lender. I know that when a client has decided to completely resist paying any amount prior to funding, it is almost impossible to convince otherwise. Regardless of assumptions and explainations of what upfront fees are and what is done or not done for them by other people, there continues to be a misunderstanding of "due diligence" expenses and who typically pays for them. I am sure others have told you that "Due diligence" is an upfront fee and should be paid by the lender. However, I submit to you, "where are they?" With cooperation from all parties involved, proper due diligence can ensure both borrowers and lenders achieve their business objectives. Sincerely, Peter White

I was recently asked to read the article posted by Edward of Las Vegas since my name and company were so prominently presented in part of Edward's tirade. I find it interesting how simple it is for someone like Edward to misrepresent their opinions as facts and so clearly slander another person's name and company. I would like to state formally that VIPTechnologies has no affiliation with any other company other than in the fact that we do work for people and companies. VIPTechnologies is asked to perform due diligence services for companies all over the world and we have created a very good name for ourselves by completing our work efficiently and professionally. It is true that I was asked to forward a list of Due Diligence items that were being requested on the behalf of Edward's project. After being in contact with Edward I forwarded to him the list of items. I find it extremely interesting that of all the people and companies that have reviewed my due diligence questions, Edward is the ONLY one who claims to have considered my forms and charges as "bogus". I have received compliments from many top professionals in the financial industry, including former senior financial executives from fortune 500 companies and accounting firms, regarding my due diligence process and not a single complaint from them that my charges were erroneous or "bogus". To back up my claim I am willing to provide any number of references to my work and I do so proudly!!! In fact, my charges and due diligence process has been developed by working with and requesting information from accounting firms such as Ernst and Young, Deloitte Touche and Tohmatsu, Cap Gemini as well as other private individuals. I have never claimed to be anyone or anything different that what I am nor have I claimed to be able to accomplish anything more that what I can. I was Open and Honest with Mr. Edward of Las Vegas regarding both myself and VIPTechnologies. Regarding Edward's other claims against the other individuals and companies in his posting, I seriously question whether he is again stating his opinions as misrepresented facts. It is clear the Edward of Las Vegas is angry. I hope that his attempt to belittle others in such a public forum has served his psyche well. I feel sorry for Mr. Edward that he has lacked the ability to attract a funding group that meets his requirements. However, that gives him no right to disparage myself nor my company in this or any other manner!