ED Magedson – Founder
Resurrection Financial4115 Columbia Road Suite #5 Martinez, Georgia United States of America
I learned about Resurrection Financial around March of 2009 through a post on the Big Board at www.loopnet.com. While I dont remember the wording of the post, it did state that difficult deals werent any trouble for this firm, and it referenced that creative methods were available to handle financing shortfalls. My failed transaction involved financing for the acquisition of a property that was already occupied by an investment grade tenant with an extremely high credit rating by Moodys, Fitch, and S & P, and the transaction required assistance on the creative end to cover some of the equity needed in order to acquire the property. Mr. Lipscomb confidently told me that he had a financing structure to fit my needs, so I began to submit offers to sellers while using his loan commitment letters. One of the sellers accepted my offer, and the seller and I went under contract in August 2009. This is where the nightmare begins.
Mr. Lipscomb submitted my loan application to a lender that stated that they had underwritten over 40 first mortgages for acquisitions of properties with this same tenant, which should have meant that the lender was skilled and efficient in its underwriting processes. Instead, it took this lender NINE MONTHS to complete the underwriting for this transaction. This was cookie-cutter underwritingsince the building was constructed specifically for this tenant less than two years earlier, there were no environmental issues, structural defects, title problems, etc. that needed to be corrected along the way. With a reputable lender, underwriting for this transaction would have taken no more than 90 days. Since this underwriting took NINE MONTHS, however, I fell out of contract two different times with the seller with a $100,000 liquidated damages clause hanging over my head.
The creative side of the deal had its own separate nightmare. The lender for the first mortgage was finally ready to close in late May 2010, and it was now time for Mr. Lipscomb to bring funds to the title company so the transaction could get completed. While I stayed in regular contact with Mr. Lipscomb throughout the month of May, and while I was REASSURRED by Mr. Lipscomb in every phone call that the funds needed to close would make it to the title company in time, yet the funds NEVER came. I was again REASSURED during subsequent phone conversations with Mr. Lipscomb after the missed closing date that the funds were still coming, and were simply delayed by a few days. Those days came and went without the funds ever reaching the title company. I fell out of contract for the second time with the seller, my loan commitment for the first mortgage expired soon afterwards, and the property that I wanted to acquire ended up being sold to an unrelated party not too long ago.
While the communication with Mr. Lipscomb has always been sparse (Mr. Lipscomb is terrible at returning calls, following up, and keeping in contact in order to provide updates to the progress of the transaction. He also moves forward with a strategy without having all of the kinks worked out first, which requires him to literally start over from a different direction, and then he keeps you in the dark about his mistakes while hes trying to fix them.), he and I have been in contact off and on regarding this transaction up until last week. Since I am once again in a situation where Mr. Lipscomb has made promises that he has not kept, Ive reached my threshold with him and am not staying silent anymore about all of the problems that his actions have caused me.
Here is the fallout from this relationship with Mr. Lipscomb and Resurrection Financial:
1. I lost my $8,000 application fee that was wired directly to the lender.
2. I lost my $12,000 for all of the third party reports needed to cover the costs of appraisals, environmental reports, etc. that was wired directly to the lender.
3. I lost my loan commitment fee of $94,218.50 (not a typo) that was wired directly to the lender.
4. I incurred legal fees of almost $55,000 (not a typo) for services that were needed in order to repair the damage to my relationship with the seller after I fell out of contract from the lenders delay, as well as to follow up with the lender to try to get the rest of the underwriting completed with as few delays and oversights as possible. This attorney worked very hard for me, and he literally wasted his time.
5. My reputation is damaged with a commercial broker that has offices all throughout the United States, and I am very likely blacklisted by this brokers agents.
6. My reputation is damaged with the seller, who is a regional developer of shopping centers and single-tenant net-leased properties, and I am very likely blacklisted by this developer.
7. My reputation is damaged with my investment colleagues because we had over $169,000 of expenses into a failed acquisition, and my reputation will take many years to repair.
Mr. Lipscomb has demonstrated time and time again to me that he cannot deliver as promised, and that he also does not have the ability to admit it. Mr. Lipscomb cannot even adhere to his own self-imposed deadlines. Throughout the last six months for the creative portion of this deal I was repeatedly told, Youll have the HUD-1 by the end of the week, or, Ill have the HUD-1 for you tomorrow, or, the paperwork will be ready next week, or, well be able to close in 2 weeks. Most recently, I was supposed to close on the creative portion of this deal by mid-November 2010, and not only havent I closed, but I havent received even one document related to the transaction.
Mr. Lipscomb stood to make over $225,000 (not a typo) in commission for procuring the lender for the first mortgage for the property that is no longer available, and also stood to make another large commission from structuring the creative side of the transaction. With two large commissions coming his way after both transactions closed, it is not possible to place me into the category of some of the others who have complained about their experiences with this firm, since there was a large financial incentive for Mr. Lipscomb to close these transactions. In addition, if my acquisition had insurmountable limitations, as has been described in some of the replies to the negative comments about Resurrection Financial, I would have never received a loan commitment letter from both Resurrection Financial as well as the lender for the first mortgage; nor would have Mr. Lipscomb had stayed in touch with me all of this time, although sporadic, to say that he was still working on this transaction. You can find additional bad experiences with Resurrection Financial and Lurton Lipscomb, Jr. at:
I am not running a smear campaign. I am not crying sour grapes. I am not a weirdo. I am someone who had sincere intentions to acquire an income-producing property, disclosed my entire financial situation to Mr. Lipscomb up front, and trusted him to perform as he stated that he could. YET, HE DID NOT RETURN IMPORTANT PHONE CALLS OR IM CHATS WHEN THE TRANSACTION WAS RUNNING INTO PROBLEMS, AND HE DID NOT KEEP ME UPDATED ON THE PROGRESS OF MY DEAL. HE DIDNT EVEN MAKE HIMSELF AVAILABLE DURING THE DATES AND TIMES THAT HE INSTRUCTED ME TO CONTACT HIM. MOST IMPORTANTLY, HE DID NOT PERFORM FOR ME AS PROMISED, TIME AND TIME AGAIN.
As you can see from my experience with Mr. Lipscomb, I have had some serious damage done to me. YOU COULD BE NEXT. Please feel free to contact me at (((ROR redacted))) or at (((ROR redacted))) to confirm my above information.
CLICK here to see why Rip-off Report, as a matter of policy, deleted either a phone number, link or e-mail address from this Report.
This report was posted on Ripoff Report on 12/01/2010 06:01 PM and is a permanent record located here: http://www.ripoffreport.com/r/Resurrection-Financial/Martinez-Georgia-30907/Resurrection-Financial-Lurton-Lipscomb-Jr-THE-DEAL-NEVER-CLOSES-AND-YOULL-NEVER-FIND-O-667195. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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