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One well-known private lender focused in hard money loans for commercial real estate developments is Kennedy Funding. Although the firm has assisted many borrowers in getting finance when conventional banks reject their applications, industry experts and consumers have voiced issues and grievances. This page investigates Kennedy Funding concerns, typical problems, and what you should know before handling them.
Clarifying Kennedy Funding
Direct private lender Kennedy Funding offers real estate developers and investors land loans, bridge loans, and other financing options. Kennedy Funding, unlike conventional banks, emphasizes asset-based lending, which appeals to people who cannot find capital via more normal sources.
Typical Kennedy Funding Concerns
Kennedy Funding has gotten complaints from customers even with its reputation as a flexible lender. The most often occurring problems listed below:
1. Interest Rates and Fees
The significant cost of borrowing is among the most common complaints. Kennedy Funding offers hard money loans, hence interest rates usually are much higher than those of conventional bank loans. High origination fees, prepayment penalties, and other unseen charges have reportedly blinders borrowers.
2. Slow Approval Method
Kennedy Funding touts itself as a quick lender, although several customers allege the approval procedure takes more time than expected. Funding delays may be a big problem, particularly for real estate investors that want rapid financial availability.
3. Fixed Loan Terms
Another frequent concern centers on the rigorous terms for repayment. Some borrowers have found it difficult to make the repayments, which has resulted in fines and, occasionally loan defaults.
4. Lack of Transparency
The lack of openness in Kennedy Funding’s loan agreements has some clients worried. Until they were too far into the process to withdraw from, borrowers have claimed not quite comprehending the loan conditions.
5. Customer Service Problems
Regarding the client service of Kennedy Funding, opinions have been conflicting. While some borrowers say their service is great, others have complained about unreturned calls, slow replies, and unclear information.
How to Prevent Problems Using Kennedy Funding
Here are some guidelines to reduce any problems should you be thinking about borrowing from Kennedy Funding:
- Before signing any contract, read the loan agreement carefully to be sure you completely understand the terms and charges.
- Don’t accept the initial offer; search other lenders to get the greatest rate.
- If anything appears confusing, ask questions before you commit.
- Plan for Additional Costs Be ready for more costs and consider them into your budget.
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Frequently Asked Questions Regarding Kennedy Funding Complaints
Kennedy Funding a Fraud: 1. Is this true?
Kennedy Funding is a respectable private lender, no doubt. Like many hard money lenders, they impose higher interest rates and fees, though, which can cause client discontent.
2. Why do some criticize Kennedy Funding?
Typical criticisms center on exorbitant costs, rigorous lending terms, sluggish processing, and poor customer service.
3. How may I avoid Kennedy Funding’s issues?
Go over the deal carefully, weigh lenders, probe concerns, and get ready for extra expenses.
4. Exists another source of funding beyond Kennedy Funding?
Depending on your circumstances, other private lenders, credit unions, and conventional banks might have better terms.
5. Does Kennedy Funding fit real estate investors?
For those who want immediate access to funds, Kennedy Funding can be a viable choice; yet, investors should be mindful of the high expenses and rigorous conditions.
In conclusion
Although Kennedy Funding has assisted many borrowers, concerns about excessive costs, sluggish processing, and rigid loan terms draw attention to the necessity of due care. To prevent financial traps, thoroughly study the terms and evaluate choices before selecting a loan.
