Capital Direct Funding

I was trying to borrow money to buy an apartment building using my 1031 exchange money. I was working with a guy named Josh Taylor, he said his company was Capital Direct Funding, but I later found out his real name is Earnest Spencer.

I paid over $50,000 in loan fees and for an appraisal that never happened. He kept postponing the closing, over 6 times, until I almost lost out on all three of the buildings I was trying to buy! Finally I realized they were never serious in the first place, they were never going to fund it, so I found another local bank to fund my purchase.

If I hadn’t, I would have lost my 1031 exchange privileges and ended up owing big bucks to the government also! Do NOT send these guys any money, this guy is a crook!

I was going to borrow $370k to purchase 3 rental properties. I sent $7400 up front in "loan origination fees" and then $3500 for appraisals.

The appraisals never happened. They said they would give me $4500 back but I never got anything back at all!

I've worked with real hard money lenders several times since then to purchase properties.

This place is a scam. Run now!

ERNEST SPENCER/AKA JOSH TAYLOR/AKA UNDERWRITING DEPARTMENT FOR CAPITAL DIRECT FUNDING LOANS ARE A SCAM. WE AND SEVERAL OTHER PEOPLE WERE PROMISED A QUICK LOAN.

THEY HAVE YOU SEND IN A LARGE DEPOSIT FOR THE PROPERTY YOU ARE BUYING AND THEN SEND YOU BOGUS PAPERWORK AND YOU NEVER HEAR FROM HIM AGAIN.

iF YOU NEED TO QUESTION MY CLAIM HERE, PLEASE FEEL TO CONTACT THE HOUSTON POLICE DEPARTMENT AND ASK FOR THE CAPITAL DIRECT FUNDING SCAM OFFICER. THEY OFFICER CAN GIVE YOU MORE DETAILS.

Capital Direct Funding , particularly Josh Taylor have caused me the worst experience with funding I have ever experienced. I lost $12,900 in fees and they HAVE NOT returned my $50k commitment money.

When I first contacted Capital Direct Funding Josh Taylor responded within a day.He went through their services with me and their reputation.

I asked what he would require to obtain a bridge loan so I could do a cash deal to win the bid on an investment property. I told him my time frame and amount needed. I was prepared to put over 20% into the deal. This bridge loan was for 60 days so that I could refinance on a construction loan which was already in preparation.

All of this was done 5 weeks prior to the closing date in September 2013. After reviewing and interviewing several other companies and finding no negative reports on Capital Direct I selected them for my funding. Mind you I did this within 3 days. They emailed all the forms to fill out including a fast approval letter.

They asked me to estimate the market value of the property which I did as an "after repair value" All along Josh kept telling me that we would be fine for the closing and that he was sending a list of requirements needed to complete the transaction and a fee $12,900 to cover the "in-house" appraisal, closing costs etc. which would all be refunded at the time of closing. I sent the money and made sure all paper work was in order. Josh said that the underwriting department has requested $50k in commitment money up front to put into what I thought would be a cash deal.

I sent it and asked again if everything was on track. This is where it fell apart. Go figure.

I was told everything was in order and they were waiting for the appraisal. It was now two weeks before closing and I started calling Josh daily.

The Friday before the closing which was scheduled for the following Tuesday Josh told me the appraisal was not done and that he thought he would have it by Monday. It still shouldn't be a problem to close on Tuesday. The long and short of it was the appraisal had not even been started and that another appraisal company was being hired. This occurred after Tuesday in which I did a dry closing assuming the funds would come by the end of the week.

They didn't. As a matter of fact I got the appraisal the following week stating that the property was over priced by $125k and Capital Direct Funding would not be funding the deal and that my initial $12,900 would not be returned due to a failed closing. In addition they would need their legal dept to send me some kind of form (Josh was sketchy on this) that I would need to fill out and return before they disbursed my $50k commitment money. That was four weeks ago.

When I first contacted Capital Direct Funding Josh Taylor responded within a day. He went through their services with me and their reputation.

I asked what he would require to obtain a bridge loan so I could do a cash deal to win the bid on an investment property. I told him my time frame and amount needed. I was prepared to put over 20% into the deal. This bridge loan was for 60 days so that I could refinance on a construction loan which was already in preparation.

All of this was done 5 weeks prior to the closing date in September 2013. After reviewing and interviewing several other companies and finding no negative reports on Capital Direct I selected them for my funding. Mind you I did this within 3 days. They emailed all the forms to fill out including a fast approval letter.

They asked me to estimate the market value of the property which I did as an "after repair value" All along Josh kept telling me that we would be fine for the closing and that he was sending a list of requirements needed to complete the transaction and a fee $12,900 to cover the "in-house" appraisal, closing costs etc. which would all be refunded at the time of closing. I sent the money and made sure all paper work was in order. Josh said that the underwriting department has requested $50k in commitment money up front to put into what I thought would be a cash deal.

I sent it and asked again if everything was on track. This is where it fell apart. Go figure.

I was told everything was in order and they were waiting for the appraisal. It was now two weeks before closing and I started calling Josh daily.

The Friday before the closing which was scheduled for the following Tuesday Josh told me the appraisal was not done and that he thought he would have it by Monday. It still shouldn't be a problem to close on Tuesday. The long and short of it was the appraisal had not even been started and that another appraisal company was being hired. This occurred after Tuesday in which I did a dry closing assuming the funds would come by the end of the week.

They didn't. As a matter of fact I got the appraisal the following week stating that the property was over priced by $125k and Capital Direct Funding would not be funding the deal and that my initial $12,900 would not be returned due to a failed closing. In addition they would need their legal dept to send me some kind of form (Josh was sketchy on this) that I would need to fill out and return before they disbursed my $50k commitment money. That was four weeks ago.

Making it now 5 weeks since the purchase failed.

I have continued to leave voice mails on Josh's phone and messages wit the answering service. The last three weeks I have heard absolutely nothing.