Complaint Review: Ron Coleman - Internet

Rebuttal to Lee Friedman:

Lee Friedman is a liar and con man who attempted to fraudulently obtain funding for a hotel property and when he could not meet lender conditions filed complaints to slander our company who work with him. NEPCO, INC is a boutique lending entity operating for 28 years as a direct lender and brokerage firm headquartered in Atlanta, GA market. On this complaint, we can provide documentation, communications, and witnesses as proof of Mr. Friedman's sad attempt. Our company can provide references, tombstones of closing with clients derived from hundreds of referrals and a social media marketing campaigns with thousands of contacts and followers.  On 4/11/18 a referral source sent us an executive summary and Broker opinion letter of value requesting a loan for Lee Friedman for $3,675,000 on a purchase for a Day's Inn in Spokane, WA.  The request was for 75% LTV of a $4,900,000 purchase. On or before 4/15/2018 we spoke to Friedman about his project.  He asked if we could close in 2 weeks and we responded that his request was impossible for any lender to do. We explained that the best we could do might be a Letter for the seller to know he was working on funding and needed more time to close the file.  With a response from one funding source, we issued a Letter of Intent and Conditional Commitment to Lee Friedman on 4/16/2018 which clearly stated the following:

1.) "Pursuant to recent conversations and documentation submitted to us by Friedman we understand that Friedman is seeking a debt or credit facility for funding property acquisition, development, and management.  Based upon those preliminary conversations, this letter sets forth a general overview of preliminary terms and conditions applicable to NEPCO, INC and/or assigns." 2.) "This overview is not intended to be and should not be construed as an attempt to establish all of the terms and conditions relating to the Proposal or any resultant financing.  It is intended only to serve as a guideline for certain terms and conditions and how the Prospal documents might be structured."  3.) "Any final documentation regarding the Proposal will be subject to further due diligence, negotiation, and issuance of a binding commitment letter, along with all other relevant documentation."  4.) "A retainer of $3,750.00 will be due at the execution of this agreement.  This fee is stated in the charges on the LOI.  This retainer will be considered earned, applied and yet refundable for services provided if unable to provide ready, willing and able investor to express interest in the project.  NEPCO shall receive and ITS INVESTING SPOKANE, LLC or any other entity established for this purpose agrees to pay compensation to NEPCO from the funding of the project based upon a fee equal to 5% of the gross loan amount."

Our agreement cited the following conditions: a) Property subject to fair market and full valuation review of all collateral with an after completed value of at least $4,900,000.00 via MAI appraisal. b) Clear and marketable title and other legal contract and agreements. c) Proof of funds sufficient to close escrow. d) Subject to norma carve out by the lender. e) First Mortgage Lien on the property.  All leases, accounts receivables, FF&E, Intellectual property, and contracts of ITS INVESTING SPOKANE, LLC.  Mr. Friedman executed our LOI and separate fee agreement stating he understood and accepted the agreement.

On April 26, 2018, we provided a Lender Commitment Letter which offered a loan on $3,675,00.00 with a 24-month term at a Libor rate plus 700 basis points for a rate of 9%.  Credit was one of the factors for this loan, Lender points were 2% in addition to ours.  We worked with three different associates in getting this loan approved who will attest to our claims and processes.  Mr. Friedman did not meet the following lender conditions:

1.) Failed to provide proof of value by stiffing the MAI appraiser for his fee.  2.) Failed to provide proof of funds sufficient to close the loan.  He stated he was President of the company applying for funding and sent bank statement.  Due diligence showed him to be registered agent at Washington Sec of State office with no documentation showing him as President. 3.) He also failed to meet minimum credit standard via his credit report

Again, Lee Friedman is a con artist seeking to acquire an income-producing property through deceptive and fraudulent means. Beware!