Kennedy Funding is probably one of the oldest big players known as a high-risk bridge loan lender for commercial real estate. With more than $4 billion in closed loans, the firm has backed multiple projects across a range of sectors.
Kennedy Funding has been criticized, as have many other financial institutions of greater exposure and risk. Some of the accusations that appear on other online forums such as the Ripoff Report range from high fees and interest rates to delays in funding and bad customer support practices.
What is Hard Money Lending?
Hard money lending is niche financing primarily backed by the value of collateral than by the creditworthiness of the borrower. This mode of lending is usually high-stakes in nature, and therefore entails a great deal of risk that is compensated for by high fees and interest rates. Borrowers typically are unable to access conventional financing avenues and take loans under stricter, less-friendly terms.
Combating Complaints about This Firm
However, the complaints appearing on such forums as Ripoffdat.com raise legitimate borrower voicing concern. On the contrary, the higher fees and somewhat-unfriendly terms could easily be termed industry-standard practices due to an increased risk of lending.
The company admits that there are unhappy clients but denies doing anything illegally or purposefully deceiving its clients for its gain. The company says it stands by all of its practices and urges prospective borrowers to do due diligence and ask clarifying questions about loan terms before signing on-the-dotted.
Best Practices for Prospective Borrowers
For anyone who is considering working with Kennedy Funding or other lenders, the following should be taken steps to follow:
Investigate Thoroughly: Check on the lender’s history, customer reviews, public records, and anything else that will allow for a full understanding of the lender’s operations in question.
Seek Professional Counsels: Seek the advice of financial experts or lawyers to look over the terms of the loan and ensure they fit with your set financial objectives.
Be Open: Talk to the lender, candidly asking and clarifying questions regarding fees charged, interest rates, payment schedules, etc.
The other Options: Investigate a variety of lenders against each other to find out what institution offers the best terms for a specific project.
Conclusion
The discussion finds its voice in the Kennedy Funding Ripoff Report, speaking to the more complex issues inherent in high-risk lending. Though there are some complaints, they account for a tiny fraction of Kennedy Funding’s overall experience. With diligence, transparency, and professional counsel, there can be negotiations that are useful even for the troubled client.
