Has anybody had an experience with Aloha Capital Lending?

Question

Just doing some researching about￼ a lending company called Aloha Capital? I’m interested in doing a Refi & purchase a multi family with them. They seem like great people but its mandatory that I check for references. How was your experience? Legitimacy? Any information could add would be greatly appreciated. ￼Thank you

Account Closed · Answer

Strange! I never did research on a company that was lending me money. If their terms are great and they give you the cash then where can you go wrong. Although, I am not the sharpest tool in the shed and maybe I am missing something.

I closed escrow on a 6-unit property on March 31st and my lender was Luther Burbank Savings. I never heard of the bank and when I went into their branch in El Segundo California I was surprised to see not one customer come into the bank during the 5 or 6 times I was opening and closing accounts and dealing with the branch manager who was wearing blue jeans, a regular shirt with no tie and looked more like a janitor.

If I rated this bank based on their appearance I would probably not have done business with them, but they gave me the best loan I could get. I had been dealing with Chase for many years for tens of millions of dollars and Chase wanted 3.9% for a $1 million loan and Luther Burbank Savings wanted 3.2%. Chase wanted pre-payment penalties of 5% the first year, 5% the 2nd year and then 4%, 3%, 2%, or something like that. Luther Burbank Savings wanted only a straight 1.3% pre-payment penalty and there was no time period.

As stated in many posts, I was selling 20 of my homes in Las Vegas and I wanted to use the money to pay off the $1 million loan ASAP. So, I had the $1 million load with Luther Burbank Savings and I paid it off within 60 days. I paid $13,000 for the penalty with Luther Burbank Savings and the prepayment penalty with Chase would have been $50,000.

I give my plumbing customers instant credit with no credit checks for as much as $15,000 and I get seriously irritated when my customers ask how they can trust my company. I am not very friendly when I explain to them that I am the one using my personal money to purchase materials and pay for labor up front to make repairs at their house while they are not paying me one penny up front. That argument really infuriates me and shows how ignorant people are. I am the one taking all the risk. What risk is the customer taking?

Marcus Wright · Answer

@Jack Orthman

That was a very excellent response & I appreciate you taking the time out to explain it with context & detail. That change the perspective of the question I was asking & I appreciate the knowledge.