Any experience with Lima One, LendingOne, or Aloha Capital?

Question

Hello,

Who has experience working with the lenders listed above? I see a lot of people recommending these lenders. What did you like about working with them and what did you not like working with them? Is there any downside to having a lender in a different state if you are investing in your own area? I'm currently looking to BRRRR as well as get some 2-4 unit rentals. Tell me anything and everything about your experience!

Stephanie P. · Answer

You need a broker that specializes in DSCR lending.

There are several lenders like Lima One and LendingOne and each one has their own guidelines and quirks.  That's where a good broker comes into play for you.  They'll ask you a bunch of questions about your situation including the state of the property, whether you want to close in an LLC or not, the purchase price or value of the asset, whether you have cash for reserves and a ton of other questions and then they'll get you together with the best lender that matches your needs.

Both LimaOne and LendingOne are good, well run companies and they have their niches.  I've tried to send loans to LendingOne and haven't been able to find one that fits their criteria.  I've closed a couple with LimaOne, but usually they're just little loans that no one else will do.

Stephanie

Kerry Baird · Answer

I've used LendingOne.

Here's what I found: the appraisal is more expensive than a conventional type of appraisal.  They are looking at the income from the property to cover the debt, debt service coverage ratio.

I had to close in an LLC, not in my own name.  The rate was a bit higher than conventional and a bit lower than hard money.  This process has not been fast, not like "get money in 5 days fast." It is about a month from beginning to end.

They do pull my personal credit.  Bank statements...so much easier!  Just the business account. No personal tax returns.

I needed to have my corporate certificate of good standing, sometimes they want to see all the pages in the corporate book, and possible a month or two showing money in a business account.