In the high-stakes world of private lending, few names spark as much curiosity and debate as Kennedy Funding. A company that boasts about funding deals when banks won’t, Kennedy Funding has been involved in hundreds of commercial real estate loans, often stepping in where traditional financial institutions see too much risk. But with that bold approach comes scrutiny—and in some corners of the internet, particularly on consumer complaint sites, Kennedy Funding is accused of being everything from misleading to outright unethical.
The phrase “Kennedy Funding ripoff” appears on search engines and discussion forums, prompting prospective borrowers to wonder: is Kennedy Funding a scam, or is it just misunderstood? In this in-depth article, we’ll explore the company’s operations, the criticisms it faces, and what borrowers need to know before stepping into the world of private lending.
What Is Kennedy Funding?
Kennedy Funding is a direct private lender based in Englewood Cliffs, New Jersey. Founded in 1985, the company specializes in asset-based bridge loans, primarily in the commercial real estate sector. Their niche? Funding projects that traditional banks avoid due to risk, location, or borrower creditworthiness.
The loans Kennedy Funding offers typically range from $1 million to $50 million or more, with terms that are faster and more flexible than most institutional lenders. They work with real estate developers, landowners, and investors—both domestic and international—looking for fast capital in complex situations.
One of the company’s major selling points is speed. Deals are often reviewed and closed within weeks—something that would take banks months. However, this speed and risk tolerance come with costs: higher interest rates, substantial fees, and rigorous due diligence.
The Kennedy Funding Ripoff Allegations
Over the years, a number of complaints and “ripoff reports” have surfaced online, primarily on forums like RipoffReport.com and Better Business Bureau comments. Most of the grievances fall into the following categories:
-
High upfront fees without loan approval
-
Lack of transparency regarding loan conditions
-
Deals canceled at the last minute
-
Aggressive communication or legal action
-
Failed international deals
Let’s break down these common themes and evaluate them from both the borrower’s and lender’s perspectives.
1. High Upfront Fees Without Closure
One of the most frequent complaints is that Kennedy Funding charges substantial upfront fees—often tens of thousands of dollars—for due diligence, site visits, appraisals, or legal reviews. Some borrowers claim that after paying these fees, they never received the funding they were promised.
Kennedy Funding’s Side:
The company argues that these fees are necessary for performing real work—travel, inspections, legal paperwork, and compliance. They also claim that all borrowers sign agreements clearly stating that the fees are non-refundable and that loan closings are not guaranteed.
Industry Context:
In private lending, it’s common for lenders to require upfront fees to offset the risk of time and resources spent on deals that might not close. Unlike banks, private lenders cannot absorb these costs across thousands of customers.
That said, borrowers must read contracts carefully. If a lender fails to perform any services after collecting fees, that’s unethical. But if due diligence was completed and the deal didn’t close for a valid reason, calling it a “ripoff” may not be fair.
2. Unclear or Changing Loan Terms
Some borrowers allege that they were promised one set of terms at the beginning—such as interest rates, loan amounts, or closing dates—but then encountered unexpected changes late in the process.
Kennedy Funding’s Response:
The company claims all terms are documented in writing, and any changes result from new information discovered during due diligence—such as property title issues, appraisals coming in too low, or borrower non-disclosure.
The Real Deal:
Private lending deals are highly sensitive to evolving risks. If a property is discovered to be encumbered by legal problems or has valuation discrepancies, the lender may adjust the terms—or cancel the deal altogether. This is legal and common, but borrowers who are unfamiliar with how fluid private lending can be might perceive it as dishonest.
3. Deals Denied After Approval Stage
In some cases, borrowers claim they received verbal or written approval, only for the loan to fall apart days before closing.
Kennedy Funding’s Defense:
They state that no deal is finalized until all closing conditions are met. If issues arise late in the process—like title disputes, zoning problems, or last-minute credit discoveries—the deal may be pulled to avoid greater loss.
Important Insight:
No private lender, especially one handling high-risk loans, will fully fund a deal without final verification. If a borrower assumes that pre-approval guarantees funding, they may be misunderstanding the process.
4. Aggressive Follow-Up or Legal Threats
Some former clients report that Kennedy Funding was aggressive—sometimes threatening legal action—if a borrower backed out or tried to dispute fee payments.
Kennedy Funding’s Position:
The company claims to operate within the bounds of contractual agreements and uses litigation only when necessary. From their point of view, they are protecting their financial interests.
Business Norms:
Commercial lending is not consumer lending. The tone, legal strictness, and pressure are different. Borrowers who fail to perform can expect strong pushback from lenders, especially when large amounts of money are at stake. While unpleasant, this doesn’t make it unethical if done within legal frameworks.
5. Problems with International Deals
Kennedy Funding promotes its ability to fund international real estate loans, but there have been complaints from borrowers outside the U.S. who say deals never closed due to legal complications.
Kennedy Funding’s Clarification:
International lending comes with unique challenges—land rights, ownership disputes, local laws, and regulatory barriers. Not all deals are feasible, and when legal or government issues arise, the company cannot proceed.
Reality:
Cross-border real estate deals are complicated even for major banks. That a private lender like Kennedy Funding tries to operate in this space is ambitious. But borrowers in foreign countries must ensure they have all documentation in order before initiating deals.
Is Kennedy Funding a Scam?
Based on all available data, Kennedy Funding is not a scam. It is a registered, long-standing private lender with a history of successfully funded loans. The company has operated for nearly 40 years, has handled deals in multiple countries, and provides asset-based financing in a challenging sector.
Most of the allegations and “ripoff” claims appear to stem from misaligned expectations, failed closings, or lack of transparency between borrower and lender—not criminal behavior. Still, that doesn’t mean Kennedy Funding is a fit for everyone.
How Borrowers Can Protect Themselves
Whether working with Kennedy Funding or any private lender, follow these tips to protect yourself:
-
Hire a real estate attorney to review all documents before signing.
-
Understand what upfront fees cover and whether they are refundable.
-
Confirm all loan terms in writing—don’t rely on verbal promises.
-
Be transparent about the property’s history, legal standing, and valuation.
-
Prepare for delays or changes—and don’t over-leverage based on expected funds.
Conclusion: Fact vs Frustration
The phrase “ripoff” is emotionally charged, and it’s easy to throw around in the high-pressure world of real estate finance. But most complaints against Kennedy Funding seem to originate from failed deals, not outright fraud. This distinction matters.
Kennedy Funding operates in a space where risk is high, timelines are short, and borrower expectations may clash with lender realities. While borrowers should always proceed with caution, there’s little evidence that Kennedy Funding is engaging in systematic wrongdoing.
Ultimately, Kennedy Funding is a tool—and like any powerful tool, it must be used wisely, with awareness of both its potential and its limitations.
