Streamline Funding REMEMBER, IF IT SOUNDS TOO GOOD TO BE TRUE...IT IS !!! Austin Texas

We were approached by Kelly Smith at Streamline funding for hard money style lending.  The benefit to this type of lending is that you can close and operate more quickly, many times with far less money down.

Kelly told our company that our project was, frankly, a smaller deal for her company and we were quickly approved for a $3.6M loan with only 7.5% down; paying interest only on amounts as used, with Streamline being able to close within two weeks.  Additionally, she claimed that her company could get us virtually unlimited funding in the future.

Kelly was aware that our contract on the property was time sensitive so we granted her a degree of exclusivity because she was offering such a great deal.

After a few weeks, we began to become concerned but Kelly would say “done worry, the deal is done”.  Finally, only a few days before close she started asking a barrage of additional questions.  I inquired why so many questions all of a sudden and she claimed it was normal.  The following day her appraisal of our project came in low and we knew something was up when Streamline sent a new last minute term sheet.

We contacted the appraisal company who indicated that not only was the appraisal just completed, but important information had been omitted; Streamline had been less than helpful on the appraisal.  After we spoke with them, their appraisal came back not only where it should have been, but over $2M higher than originally estimated.

Streamline stuck to their claims and asked for over twice the money down that was originally asked for.  They also requested that we put up land for collateral before they would agree to close.  All of this was requested within 48 hours of our deadline.  I finally made it through to another person in the company who said this was actually one of their largest loans.

Fortunately, we were able to close with a competitor and on time, saving our project.  IT IS MY OPINION THAT THIS HOW STREAMLINE DOES BUSINESS.  Promise a deal they cannot offer and hold customer hostage at the closing table.   Time kills a development deal.  I think they count on that so they can offer hard money with less risk than a bank.  In fact, they are way better off if the project fails because they own a construction company who will gladly finish a proejct.