Funded by Lima One?

17 Replies

I haven't used them personally but I know other investors who have and they didn't have any issues.

Hopefully someone with first hand experience can chime in to give you a more in-depth response.

@David Sanford , I closed a blanket loan on four properties in 2016 with them and was pretty pleased with the process. It was expensive and the interest rate was on the higher side, BUT it was 30 year fixed on investment property and they closed the loan when local banks wouldn't even consider it. If the numbers work, I would recommend them.

good experience on my end .. Like most HML companies today their pricing is directly related to your experience and your equity up front.

@Edward B. thanks. I have seen reviews that they have backed out of a deal last minute and that they have missed close dates. so these reviews worry me a little. @Jay Hinrichs yeah their rates aren't the lowest I have come across but still able to make it work. I have a handful of deals under my belt so hopefully this will help. the issue I see happening is that I haven't refinanced but 2 of my properties and they want to see 4 refis to show I know how to force appreciate.

@J Dave -

I closed on a portfolio of 4 properties (3 [email protected] 60k each and a SFR at 125k)

Even though they do 75% LTV cashout refi because of the lower valued THs it ended up being a 70% LTV cashout refi but other than that I had no issues what so ever.

As a matter of fact I had a pretty hard time finding lenders who would do a blanket loan with lower priced properties (3 TH at around 60k in my case) with a loan amount < 500k and LimaOne did it with no issues.

The loan officer and the loan processor I worked with were super reslonsive.

I got a pretty good rate I think overall 6.75% 30yr fixed with 1.75 points

Originally posted by @Nigel Guisinger :

I just terminated a contract with them. I will not be using them for any future deals


Sorry to hear that it didn't work for you. Can you elaborate on what you mean by 'terminated a contract with them'? Are you talking about prepaying their loan you had or are you referring to not going with them for financing? just curious

 

When we got to the table to sign many details of the deal were changed to the point it effected profitability of the deal and ROI. They wanted additional funds and had a rate well above what I was paying on other deals. We worked on the terms heavily prior to and they needed to adjust to be within their guidelines. We were supposed to close last week and then again today and finally I decided to inform them we would be using another lender. It will cost me 30-45 days and tens of thousands in fees and additional cost but I am a stickler for doing what was agreed to and in the end I lost my comfort and trust in their integrity. Finally their head of lending and I spoke and it went even further down hill. I've done dozens of deals And they all adjust somewhat but this way the first time in 12 years and $20m in purchase that I had to fire a lender. The lead multi family person there is the reason I will not do business with them.

On a positive note I have a great relationship with my local broker here in Oregon and he is helping me complete this deal now. The only reason we were using Lima one is because this is a deal in Tennessee and originally my regular lender doesn’t lend that far away. 

Darin M.  I used Veristone. I have used them before and they were willing to lend on this deal because we’ve done work together in the past. I did have a backs up of LendingOne and another local source. 

Just a forewarning to save yourself a million headaches. DO NOT use Lima One for any financing. There are a million other options, Dominion, Lending One, Visio. Use anyone EXCEPT Lima One. They have failed multiple times to make insurance payments from my escrow account. They also paid the county property taxes late from escrow so I incurred penalties. This has literally happened multiple times in 1 year. Unfortunately, I did a portfolio loan with them so multiple properties are involved and getting screwed up. Lima One is a total joke.

Mike!  Yes, this was my final straw with them when they decided not to pay 2 of my escrowed insurances. I ended up paying them (again) myself out of pocket because they lapsed because they wouldn’t pay them.   It ended with me taking them to court to get my pre-payment penalty back. A judge ruled in my favor.  But of course they are now appealing it, bullying me, etc trying to get me to go away.  I’ve seen enough negative of same sort of things happening to others with Lima One. If more of us put pressure maybe we can get somewhere, or class action on them through consumer financial protection bureau.  We can chat or would you be willing to also file a claim on your experience with consumer protection bureau (you can do it all online).  And better business bureau.  I have done both but they need multiple complaints to do anything.

I currently have three portfolio loans with Lima one. I began getting loans in 2017 and have gotten one loan every year thus far. 6-9 properties per portfolio loan. I originally buy the homes fix them up wait the six months and get the maximum arv as a cash out refi. I have had issues with insurance ,taxes, and escrow however they have a new VP in charge and he seems to be on the ball and has been very responsive in dealing with the issues.