Philadelphia, PA · Member since 2015 · 15 posts · 3 votes
I've been investigating several peer to peer lenders lately and I'm a little weary of them. Some are banned in certain states and I have other concerns. Has anyone used or does anyone know someone who used Lending club, Prosper, or any other peer to peer lending group to fiance a deal? And it seems like their interest rates are a bit high compared to traditional loans in my area. And what kind of deals do people think they would be good for? They seem to have looser terms and less restrictions and have high minimums like $100,000 for Realty Mogul which is one of these peer to peer sites solely for real estate deals.
I have never used a peer to peer lending site for anything but there is a BP podcast on this exact subject. It is podcast #29 (an older one) with Dawn Anastasi. I believe she is active on the site maybe try reaching out to her. Good luck.
Yep! Here is the podcast on peer to peer lending. I used peer to peer lending to buy houses but there are many other uses for it.
I have never used a peer to peer lending site for anything but there is a BP podcast on this exact subject. It is podcast #29 (an older one) with Dawn Anastasi. I believe she is active on the site maybe try reaching out to her. Good luck.
I have never used a peer to peer lending site for anything but there is a BP podcast on this exact subject. It is podcast #29 (an older one) with Dawn Anastasi. I believe she is active on the site maybe try reaching out to her. Good luck.
Yep! Here is the podcast on peer to peer lending. I used peer to peer lending to buy houses but there are many other uses for it.
I'm actually looking to use Lending Club or SoFi to fund my rehab. I'm going to take out a loan big enough to cover the rehab and 6 months worth of payments for the loan so that I don't have to use any of my own money until I do the cash out refi.
My husband just tried Sofi. We saw a home we liked outside of our limit but the cash flow was too good to turn down. Sofi states it will take up to 14 days to verify information. He was approved in 2 days. After talking to a few people who have used Sofi, we noticed almost everyone was given the same rate. So he called them up and they knocked off a good 3%. So far they seem reall easy to work with. No fees. Simple application. Funds within 3 business days. The lady said if it takes more than 3 business days, something is usually wrong.
@Nikki Grizzlecan you speak more about how you utilized SoFi? Did you use their Mortgage product to purchase an investment property, or did you use their Person Loan product?
@Kevin TrumbullWe used their personal loan. They do not allow you to use their mortgage loan for investment properties. The property will have to be your primary or secondary home only. You also have to live there for at least a year. I do know someone who has used sofi for a second home and rented it out immediately. But that can only happen once unless you refinance with another company and start all over. We used it for a cash purchase as well as 2 down payments for conventional loans. Note: All the properties are rentals with tenants in place. One home covers the monthly Sofi payment, its mortgage and still has a cash flow. They loan payoff is a max of 7 years.
Interesting, right at the bottom of the Personal Loan application page it says:
So I was thinking we can't use the Personal Loan product for rentals, but I always wondered 'how would they know'. :) I guess there is a risk, if they find out, maybe they could call the loan due?
Not sure but I spoke with SoFi on the phone and asked several questions since we planned on using them more than once. They were well aware that we were investors and even stated they work with investors all the time. Also, they lower their interest rate for investors who use them regularly.
The first was 10% for 50k. The second time we applied, but didnt use, it was 6% for 75k. We also have high credit scores over 720 so it definitely makes a huge difference.
The first was 10% for 50k. The second time we applied, but didnt use, it was 6% for 75k. We also have high credit scores over 720 so it definitely makes a huge difference.
@Nikki Grizzle, I wonder if you were able to get another loan from them, how is it going so far now that couple months passed. I definitely keeping peer to peer lending as one of finance options. Thanks in advance!
@Angela Kriv We have not applied for another loan through Sofi as we have not had to. I do know that once you develop a relationship with them your interest rate will fall. They also send you awesome goodies. T-shirt, heavy duty bottle and wine opener and a selfie stick lol. I sort of want to get another loan to see if they have anymore. We never got goodies from anyone else.
@Nikki Grizzle, Thank you! That's awesome, who doesn't like free goodies ;) Let me ask you did your Credit Score got a hit once you get a loan from them? And if yes then how many points? Thanks!
@Angela Kriv They do a soft pull. He said it did not hurt his credit at all. I do know a few years ago people had issues with them doing hard pulls and was false advertising but it seems that they have gotten much better. So far I know a few other people who have used them with no issues.
I was looking to take out a personal loan at Sofi.com for a local property purchase. It looked without digging too hard that the maximum loan was $40,000. Have they changed their loan values or do I just need to look deeper into it?
@Daniel Hanson, I took out a personal from sofi for 50K at 8%. Used it for purchase and rehab of 2 properties along with a loan from my 401k. That was the maximum amount I could borrow at the time. That was back around September- October 2015.
@Nathan Waters, did you refi the properties you purchased using your Sofi loan funds to pay them off? If so, when you went through the mortgage qualification process, did the 50k loan hinder your ability to get the new mortgage?
The sofi loan was not a mortgage, it was a personal loan used for funding the houses. So effectively there was no debt on the properties initially. I did a cash out refinance and paid off one loan I had from lending club. It was a higher interest. The second cash out refinance was just completed yesterday. I haven't done anything with that money yet. I may use it to buy another property and just keep the sofi loan because it has a relatively low interest rate and I am currently cashflowing among all of my houses with the sofi loan and the mortgages. I have 3 rentals. I could pay off sofi and cash flow better or use the proceeds from the refinance to grow. It didn't impact me for refinancing much because I have a pretty high income from my primary job so the impact on the debt to income ratio was minimal. I am also putting the refinances in my LLC and therefore they are not going on my personal credit. Although the bank did pull a credit report just to confirm that I wasn't a deadbeat. Local banks are grat to work with and I will probably forgo using peer to peer lending in the future and focus on building working relationships with the local bankers I am currently working with.
@Nathan Waters great explanation. My concern was the debt to income ratio after getting a $50k loan and the problem that could cause when trying to refinance. This makes sense and seems like a viable means to raise down-payment cash assuming a person's income is high enough and doesn't call a debt-to-income ratio problem. Thanks for sharing your experience.