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Dellovo Capital is not a lending source. Dellovo Capital is not an equity fund. Dellovo Capital is a "consulting firm" that guarantees nothing but an LOI that does NOT have to match their lenders LOI. Dellovo Capital is a "loan" broker who takes a $15, 000 deposit and shops your loan packet to numerous lenders. The LOI you get from their "shopping" does not have to
match their terms. According to Dellovo Capital if they get any LOI, no matter the terms, it fulfills their obligations.
Dellovo Capital fine prints states "The Lender Terms presented below are not guaranteed as a result of this LOI, and are subject to change. DCC’s Fee and this LOI are not contingent on any changes to the Lender’s Final Offer to Fund this transaction." (the LOI I signed only stated "The Lender Terms
presented below are not guaranteed as a result of this LOI, and are subject to change")
Dellovo Capital makes verbal commitments on the phone about commitments; terms and days to get funding. However, their LOI states that nothing outside of the LOI matters.
Dellovo Capital states "this LOI is not a commitment or a guarantee that a loan will close, nor should it be construed as such." It goes on to state that the Dellovo Capital LOI "shall supersede all prior agreements, negotiations ... whether oral or written."
Dellovo Capital states "within sixty (30) days of the Client’s presentation of all the loan documentation required by DCC, DCC is unable to secure a Lender willing to provide a Term Sheet for this transaction with lender terms as reasonably presented on Page One of this LOI, or as otherwise
agreed upon, either verbally or in writing by the Client, then upon written notice from the Client, DCC will discontinue processing this transaction and refund the Processing & Due Diligence Fee in full." Key phrase is "Term Sheet" - it doesn't matter what the term sheet states. If Dellovo Capital
gets ANY term sheet they will NOT refund your money.
_________________________
Personal experience with Dellovo Capital:
Dellovo Capital issued a letter of intent stating they could assist on obtaining financing for a multi family real estate deal. In the LOI it had stated terms and conditions which were verbally reiterated. Dellovo Capital stated this would be no problem to secure financing and if it couldn't get it done they would refund my deposit. The loan Dellovo Capital issued in LOI was for:
Purchase & Rehabilitation of a multi family complex. Projected Value: $2.2m upon completion; Purchase Price: $1.4m; Loan Amount: $1.26m + $225, 000.00 for renovations Lender Terms: Between 6.00 and 7.00% fixed, 30 to 35 year am, 1 point, no prepayment penalty. Processing Fee not to exceed $5, 000.00.
(Email from Nellie Bloedoorn (loan broker) quoting Dellovo Capital "We can offer your client a rate of between 6.00 and 7.00%, financing up to 90% of purchase price + development costs. This is a 30 year loan with a 30 year amortization, self- liquidating, similar to a home mortgage, and no prepayment penalty. A longer loan period and amortization may also be
available whereas this is for an apartment complex. Total Points are 5. Processing & Due Diligence Fee is $15, 000.00, and is refundable IN FULL if the client does not obtain an acceptable Term Sheet from our Investor.")
The LOI Dellovo Capital delivered from a third party was a bridge loan: 12% interest; loan amount of $1.12m and $250k rehab; 12 month term; 2 points; processing fee $7, 000.00.
Email from Raymond Dellovo to Nellie Bloedoorn (below): *Notice Ray Dellovo states that "12.99% is an extreme rate for a transaction like this" and the Due Diligence Fee is "refundable IN FULL if the client does not obtain an acceptable Term Sheet from our Investor."
-----Original Message-----
From: Raymond Dellovo
To: [protected]@aol.com
Sent: Tue, Aug 25, 2009 10:27 am
Subject: RE: scenario
/text removed/
Ray Dellovo, President
Dellovo Capital Corporation
394 Lowell Street Suite 13
Lexington, MA 02420
Tel: 781.274.9800 x.111
Conference Room: [protected]. Code is 1085639#
Fax: 781.645.1372
www.dellovocapital.com
_________________________
Dellovo Capital promised a conventional loan and delivered a bridge loan.
Dellovo Capital refused to refund the $10, 000 retainer verbally stating that
the bridge loan was better than a conventional loan. However, Dellovo
Capital would not provide this comparison in writing.
Investor beware. Dellovo Capital has ZERO obligation to secure you a loan.
Dellovo Capital has ZERO obligation to match their LOI.
_________________________
On 9/28 I sent this to Dellovo Capital. On 9/26 this their response (my
response is in brackets):
From: Raymond Dellovo
Date: Tue, 29 Sep 2009 09:50:47 -0400
To: Nathan Tabor
Cc: Harry Saul
Subject: RE: For clarity
I don't see the following facts in your assessment:
1) The property is in a depressed state, and requires extensive renovations
in order to bring it to a conventional loan status. (this was fully
disclosed to Dellovo Capital in writing and conversation)
2) Prior to DCC providing an LOI, you neglected to tell us about one unit
that was completely burned out and two were smoke damaged. Also, none of
this was covered by the seller's insurance. You expected this to be
covered under the rehab costs. (this was fully disclosed in verbal
conversations with Dellovo Capital and the repairs were covered in the $250k
renovation budget)
3) Prior to DCC providing an LOI to obtain funding for your project, you
professed that the property was 50% rented when, upon reviewing updates to
the rent role, we discovered that the occupancy was never as high as 50%.
(this was fully disclosed to Dellovo Capital. 28 of 58 units were leased.
It was 48.2% occupied, not 50%)
4) You agreed to go forward if we dismissed the fee that was due to us upon
your acceptance of the lender's Term Sheet. (I agreed to go forward if the
fee could be paid at closing and if a writing explanation was provided
detailing how a conventional loan was the same as a bridge loan. Both were
denied by Dellovo Capital.)
5) You insisted the referring broker drop her commission for the
transaction, even though you signed our LOI Agreeing to pay her 2 points.
(Nellie Bloedoorn introduced me to Dellovo Capital. During this discussion
she wasn't present for 3 days. I emailed Dellovo Capital about dropping her
fees. Dellovo Capital wrote back that they had no issue with this if Nellie
Bloedoorn sent it to them in writing)
6) The long term rate offered by DCC's lender was 1% less than what DCC's
LOI indicated it could be, which means a savings of 14, 000.00 per year, or
$70, 000.00 for 5 years. (the rated offered by Dellovo Capital was 6 to 7%.
The LOI presented by the bridge loan lender was 12% with interest payment
only for the first year of approximately $180, 000.)
7) There was no prepayment penalty on the 12% interest rehab loan, and you
indicated you could complete the renovations in less than 60 days, so your
total cost for the construction portion of the loan would only have been 2%
at most. (Dellovo Capital provided an LOI and didn't secure an LOI to match
their terms. Dellovo Capital violated their own agreement and refuses to
refund deposit)
Ray Dellovo, President
Dellovo Capital Corporation
394 Lowell Street Suite 13
Lexington, MA 02420
Tel: 781.274.9800 x.111
Conference Room: [protected]. Code is 1085639#
Fax: 781.645.1372
www.dellovocapital.com
_________________________
From: Raymond Dellovo
To: [protected]@aol.com
Sent: Tue, Aug 25, 2009 10:27 am
Subject: RE: scenario
/text removed/
Ray Dellovo, President
Dellovo Capital Corporation
394 Lowell Street Suite 13
Lexington, MA 02420
Tel: 781.274.9800 x.111
Conference Room: [protected]. Code is 1085639#
Fax: 781.645.1372
www.dellovocapital.com
The complaint has been investigated and resolved to the customer’s satisfaction.
The North Carolina Depart of Justice has written Dellovo Capital a letter.
Here is the letter that Mr. Dellovo and his attorney received from the NC Department of Justice. They have not responded to the Department of Justice or refunded the money.
Mr. Louis Vitiello is the Attorney for Dellovo Capital and Ray Dellovo
Mr. Louis R. Vitiello, Esq.
4 Redcoat Lane
Lexington, MA 02420
Re: File No. 0915034
Dear Mr. Vitiello:
Thank you for your letter, dated November 2, 2009, in response to the complaint filed by Mr. Nathan Tabor. Please accept my apology for the delay in responding to your letter. We understand that you are providing legal representation for Mr. Dellovo, president of Dellovo Capital Corporation (“client”) in this matter. Enclosed is a copy of the subsequent response we received from Mr. Tabor in which he reiterates his demand for a refund. Your letter poses several jurisdictional issues which we would like to address.
First, you state that your client does not appear to be subject to North Carolina’s Loan Broker Act in that your client is a commercial loan broker, that Mr. Tabor does not appear to be a “consumer” as defined under the Act, and that the loan sought by Mr. Tabor was for his company and not for MR. Tabor individually. Second, you state that your client does not conduct business in North Carolina, that Mr. Tabor contacted your client in the Commonwealth of Massachusetts, and executed a loan agreement stating that the venue would be the Commonwealth of Massachusetts. Third, you contend that North Carolina law is not applicable in this matter and that both parties have agreed to mediate Mr. Tabor’s claims in Massachusetts, which you believe is the appropriate venue.
As you may be aware, there has been a recent ruling by the North Carolina Court of Appeals which addresses some of the same issues cited in your letter. See Printing Services of Greensboro, Inc. v. American Capital Group, Inc., 180 N.C. App. 70, 637 S.E.2d 230 (2006), affirmed per curiam, 361 N.C. 347, 643 S.E.2d 586 (2007).
Mr. Louis R. Vitiello, Esq.
March 25, 2010
Page 2
In summary, the Court held that (1) the defendant was not precluded from being considered a loan broker governed by the Loan Broker Act simply because the party for whom the loan was intended was a corporation and not an individual; (2) that although the terms of the agreement included a consent to jurisdiction in another state, the provision was permissive rather than mandatory; and (3) N.C. Gen Stat. § 66-112 provides that North Carolina’s Loan Broker Act applies in all circumstances in which any party to the contract conducted any contractual activity in this state, that the agreement was signed in this state, and that the discussion and negotiation of the agreement occurred in this state.
Based on this authority, it appears that your client is subject to the North Carolina Loan Broker Act, N.C. Gen. Stat. § 66-106 et seq. The Act, N.C. Gen. Stat. § 66-111, provides for the recovery of all fees paid to the broker if there has been a failure to fully comply with the requirements of the statute.
We request that you provide us with a written response within ten (10) days after receipt of this letter stating your client’s position. Based on the apparent non-compliance with the Loan Broker Act, we strongly recommend that your client provide Mr. Tabor a full refund in the amount of $10, 000. When submitting your response, please refer to File No. 0915034.
Thank you for your cooperation.
Sincerely,
David C. Evers
Investigator
Philip A. Lehman
Assistant Attorney General
CONSUMER PROTECTION DIVISION
Enclosure
Cc: Nathan Tabor
Dellovo Capital Corporation (DCC) - In response to blog complaints:
It has come to our attention that a select few individuals have taken the action of posting defamatory content regarding our corporation on several internet blogs. We invite any individual that questions the legitimacy of these complaints to contact us or the Massachusetts Attorney General’s office directly. We are happy to provide references of monies that have been refunded, as well as discuss why money was not refunded in certain circumstances. For 23 years we have operated at the highest level of integrity in an industry that has come under intense scrutiny in recent years.
Due to these unfortunate events, DCC no longer offers a refundable deposit and no longer centers its operations around the brokerage of commercial loans. DCC has recently been approved by two of only 25 national direct MAP lenders as a Direct Correspondent Lender to offer HUD, FHA, USDA, Fannie and Freddie products in the commercial mortgage marketplace. Please inquire for more details.
Ray Dellovo
[protected]
Ray@dellovocapital.com
BORROW BEWARE ------ BORROWER BEWARE ------ BORROWER BEWARE
SCAM ARTIST!
HEY FOLKS... DO NOT BUY RAY DELLOVO'S LIES! HE WILL STEAL YOU MONEY. I HAVE A LIST OF PEOPLE THAT WILL TELL YOU THEIR STORY AND IT IS NOT PRETTY. OUT AND OUT RAY DELLOVO AND HARRY SAUL ARE THE MOST DISHONEST CROOKS IN THE BUSINESS! GO TO WWW.COMPLAINTSBOARD.COM / WWW.BROKERUNIIVERSE.COM ETC...
HE HAS A TON OF COMPLAINTS...
DON'T SIGN HIS CONTRACT. HE WILL TRY TO TALK YOU INTO IT AND ALSO SAY YOUR MONEY IS SAFE, BUT IT IS NOT. HE STEALS IT. DO NOT SEND HIM MONEY! HE SEEMS TO NOT EVEN KNOW THE DIFFERENCE BETWEEN A LOI AND A TERM SHEET.
LET ME SAVE YOU SOME TIME. GO AND BUY SOME VASELINE AND MAKE YOUR OWN CALLS TO KENNEDY FUNDING / BLUE SKY / REMINGTON FINANCIAL. YOU WILL SAVE EITHER $10K/$30K / $35k OF RAY DELLVO'S DUE DILLIGENGE FEE.
JUST POST A QUESTION ABOUT RAY DELLOVO AND SEE HOW MANY PEOPLE CONTACT YOU BACK WITH THEIR STORY OF DELLOVO STEALING THEIR MONEY AND NOT PERFORMING.
HE HAS 8 OPEN COMPLAINTS AT THE OFFICE OF THE ATTORNEY GENERAL BOSTON - CALL AND CHECK ON YOUR OWN!