Easy Street Capital (Legit or No?)
Investor · Bangor, ME · Member since 2023 · 71 posts · 59 votes
Easy Street Capital (Legit or No?)
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Robin SimonBusiness Member
Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votesQuote from @Aaron Bard:
Hello!
I just found another deal and am touring it with my agent shortly.
I was recently messaged by a representative of Easy Street Capital about DSCR lending. I was wondering if anyone else in the BP community has used this company for their investment lending.
I cannot achieve another low-money down loan until the end of 2024 when the seasoning period of my FHA loan runs out, so I'm looking for other alternatives.
Thank you for any help!
Hi Aaron - check out our lender page here on BiggerPockets - you can see info and a long track record of strong reviews: https://www.biggerpockets.com/business/page/49
Also, sharing links to the 10-Part Article Series we published here on BP on everything you need to know about DSCR Loans - we are fully committed to transparency and providing info/guidance to the BP investor community!
DSCR Loans: What Are They And How To Get The Best Terms
https://www.biggerpockets.com/...
DSCR Loans: How To Use Pro Strategies To Save More And Make More
https://www.biggerpockets.com/...
Multifamily DSCR Loans: A New High-Impact Loan Option For Real Estate Investors?
https://www.biggerpockets.com/...
12 Frequently Asked Questions (And Answers) About DSCR Loans
https://www.biggerpockets.com/...
8 More Commonly Asked Questions and Answers to DSCR Loans
https://www.biggerpockets.com/blog/eight-questions-and-answe...
What Documents Do You Need for a DSCR Loan?
https://www.biggerpockets.com/blog/what-documents-do-you-nee...
BRRRR Loans: What Are the Options, and How Do DSCR Loans Stack Up?
https://www.biggerpockets.com/blog/brrrr-loans-what-are-the-...
Short-Term Rental Loans: What Are the Options and How Do DSCR Loans Stack Up?
https://www.biggerpockets.com/blog/short-term-rental-loans-a...
DSCR Loans: Terms to Know When Working With These Popular Rental Loan
https://www.biggerpockets.com/blog/dscr-loans-terms-to-know
What’s Next For DSCR Loans? Updates For 2024 and Beyond
https://www.biggerpockets.com/blog/what-is-coming-in-2024-fo...
Harpoon Capital514 Reviews
36 Replies
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Brian Williams:
Keyword most! Again they new this was my first one, and I asked multiple times a week or more in advance and those pieces of sh it could’ve and should’ve been honest right from the get go not finally telling me they will reimburse me my own money 2hrs before closing. Them doing it that way was going to put me in a financial bind just cause they couldn’t be fuc king honest at the beginning. Then the pieces of sh it kept my $7,500 deposit money after lying and deceiving me. Sorry but reimbursing my own money I spent is not funding sh it! They are just con artist and piece of sh it thieves!Quote from @Erik Estrada:
Quote from @Brian Williams:
Be very careful dealing with this group. Especially first time flippers dealing with them on hard money loans. #1 thing they do not mention until 1 1/2 - 2hrs before closing after being asked multiple times days before closing is that your rehab money is not being funded to you even though that is how it is stated on their paperwork. It is a reimbursement of your own money that you spend, after they review to approve the value of work and money you spent. They pretty much stole $7,500 from us since they couldn't provide that information until they did. We had to back out of the deal because using our money for rehab and getting reimbursed later was not what was planned or how they sold it and would have put us in a bad financial position since they could not give all the proper information upfront. Not sure how they legally do it because funding and reimbursing is 2 completely different definitions, so I would be very careful for any other words and definitions that they manipulate to put money in their pockets. Would not recommend these people at all there is a reason they have a F on the BBB. I just wish I would've paid attention. This is a group of people with no morals who is more concerned with putting money in their own pockets instead of being upfront, honest, truthful with people in the beginning.
Most Hard Money Lenders and Construction lenders follow this model.
Think about it. What if you can't complete the project or use the funds for something else?
I do agree though that they should have explained the draw process to you and have written you an email to you before getting under contract. I usually have everything in writing so I can reference it back to the client.
A way around this is to take on a secured LOC for rehab fundings. I would suggest getting this set up beforehand.
7500.00 went to Who ??? the lender ??? or did you lose your EM because you failed to close escrow ? - 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Brian Williams:
Not exactly sure who got it. Might have been New Western Reality who set me up with easy-street. But I do know for a fact Delilah McMahan with New Western Reality and Taylor Florentino with Easystreet flat out deceived and lied to me and didn’t give me the very important information until 2 hours before closing. I had to back out because they weren’t honest and if I signed those papers would have put me in a financial bind. So not only did I lose $7,500 because of them I lost all the time I spent on it as well when I could have been doing something else actually making money. Again they knew this was my first time dealing with any hard money lenders and I asked multiple times a week or more in advanced. I don’t understand what is so difficult to be honest with your customers. Again there is a reason Easystreet has a big F on the BBB I just wish I knew sooner. New Western Reality and Easystreet capital are both lying, deceiving thieves with no fu cking morals! Oh and don’t ever do an auction with New Western Reality because they use the owners brother as a fluffier to jack the price up to highest price point someone will go to.Quote from @Jay Hinrichs:
Quote from @Brian Williams:
Keyword most! Again they new this was my first one, and I asked multiple times a week or more in advance and those pieces of sh it could’ve and should’ve been honest right from the get go not finally telling me they will reimburse me my own money 2hrs before closing. Them doing it that way was going to put me in a financial bind just cause they couldn’t be fuc king honest at the beginning. Then the pieces of sh it kept my $7,500 deposit money after lying and deceiving me. Sorry but reimbursing my own money I spent is not funding sh it! They are just con artist and piece of sh it thieves!Quote from @Erik Estrada:
Quote from @Brian Williams:
Be very careful dealing with this group. Especially first time flippers dealing with them on hard money loans. #1 thing they do not mention until 1 1/2 - 2hrs before closing after being asked multiple times days before closing is that your rehab money is not being funded to you even though that is how it is stated on their paperwork. It is a reimbursement of your own money that you spend, after they review to approve the value of work and money you spent. They pretty much stole $7,500 from us since they couldn't provide that information until they did. We had to back out of the deal because using our money for rehab and getting reimbursed later was not what was planned or how they sold it and would have put us in a bad financial position since they could not give all the proper information upfront. Not sure how they legally do it because funding and reimbursing is 2 completely different definitions, so I would be very careful for any other words and definitions that they manipulate to put money in their pockets. Would not recommend these people at all there is a reason they have a F on the BBB. I just wish I would've paid attention. This is a group of people with no morals who is more concerned with putting money in their own pockets instead of being upfront, honest, truthful with people in the beginning.
Most Hard Money Lenders and Construction lenders follow this model.
Think about it. What if you can't complete the project or use the funds for something else?
I do agree though that they should have explained the draw process to you and have written you an email to you before getting under contract. I usually have everything in writing so I can reference it back to the client.
A way around this is to take on a secured LOC for rehab fundings. I would suggest getting this set up beforehand.
7500.00 went to Who ??? the lender ??? or did you lose your EM because you failed to close escrow ?
Your not exactly sure ?? thats a tad strange.. But now I see the rest of the story ( like Paul Harvey used to say) New Western.. I personally will not do bizz with them.. or recommend them. their style of getting these large non refundable deposits up front is just counter to how IMHO real estate should be done I strongly suspect they are the ones who kept your deposit not the lender.. But they are very good at what they do. And this is not surprising at all to me. I have had clients that used them and got absolutely hammered.. They relied on information provided by NW and it was way off base and they lost their butts..
So Easy street is their go to HML it sounds like.. Sorry this happened to you.. RE is a capital intensive bizzness so as I stated one must be able to front the draws for a few weeks plus have reserves for payments etc etc.. If the deal could not work if they did not front the draws day one then you need to bolster your capital position So your not on a knifes edge any little thing could create a massive problem for you if your not properly capitalized. - Specialist · NJ · Member since 2022 · 1k+ posts · 650 votes1y
I'v sourced about 8 - 10 properties from New Western, there's 1 that was ok. And I mean ok. No one killed it. The others were trash sold too high for the cap of the market post rehab. Spreads evaporated during the rehab process as delays and overages occurred on all their inventory. I had 4 - 5 clients lose money on their inventory. A few other broke even.
I've always done better with the smaller, local wholesaler who is looking to work hard to build a business. They'll appreciate my business. A NW, just tells me gimme your best and final and it has to be over ask.
The local guy will use all their local connections and knowledge and try to find an original lead and then not soak you on the wholesale fee.
As far as Easy Street goes, yes NW does cattle borrowers their way. I also have and still use Easy Street Capital for loan. My rep there is pretty good and I've closed with them several times so I know their conditions, closing process, and dos and don't on loans.
- Member since 2023 · 16 posts · 1 vote1y
Hi Aaron, I have closed a loan with them.
Have you gotten quotes from other DSCR lenders? - Specialist · NJ · Member since 2022 · 1k+ posts · 650 votes1y
To be an F in lending, you have to fail to come to the table with the money after the green light is given.
I've been through tortuous loans in my career as a broker and L/O, I've been asked for pointless documents, been stalled on, been pushed to the back burner, dealt with non communication, and sloppy UW work. That's gonna happen if you see enough loans. But an F is a failure to make good on a wire, IMO.
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