[Zach]

If we collect an upfront fee from a client, it is because they have represented a certain value and debt to us. That value and debt meets our criteria for funding.

Now, if the final valuation comes back much lower than the client has represented, this will impact the offer. Before charging the borrower we will do a "presort" of the property, and put together the best estimate we can of what the property will likely be worth after final valuation. We disclose the fees on a recorded line with the borrower and explain the process. It couldn't be more transparent.

If the final debt against the property is higher than represented, that will also impact the offer. If a borrower lies and says their mortgage balance is $50K and our title search reveals it is $75K, that will impact our final loan size. Sometimes title search reveals surprising things, like a massive tax lien, undisclosed 2nd mortgage, or large judgment. This can kill deals in some cases.

We have no incentive to collect pass-through fees. We make nothing if the deal doesn't go through. In fact, it actually costs us time and money to perform these services.