Lima One Capital Hard Money Lender...stay away!

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Lima One Capital Hard Money Lender...stay away!

Myles Daniel
Member since 2018 · 12 posts · 18 votes

I just wanted to copy and paste the review I left for Lima One Capital. Feel free to send my a note directly if you want more details. I'd just advise against using them as your lender. I've been in business for almost 8 months and completed 6 flips, so I know enough to recognize when I'm being shafted.  See below--

"I want to start by saying that I'm not writing this after being denied. I was approved and got funding for my investment home. However, I had a miserable experience with this company. I can't go into all the details in a google review, so I'll keep it simple. The lack of transparency, organization and internal communication is appalling! You can rest assure that you will have costly surprises along the way. Not to mention, the underwriter I was working with began raising his voice on the phone in a very unprofessional manner when I comforted him on issues that should have been resolved weeks prior. Clear communication and transparency are everything when working with a lender. This is something you won't get from Lima One. I would never recommend this company to investors. Do some research and find another lender because the grass is greener on the other side!"

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Chris MasonPro Member
Moderator
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
7y

The business model of many hard money lenders is to get as many applications in the door as possible, and cherry pick the safest ones, and only fund those ones. This is especially true if the HML is on the better side of rate/fees, which by all reports Lima One is. The hard money lenders with the trash rates, trash terms, trash conditions... yeah, they'll fund with fewer questions asked.

I'm not going to say any of the above comments are wrong, or that the experiences of the folks posting are invalid, but if you want that super top notch terms/fees/rates hard money loan, then your DEAL needs to also be super top notch, even to a vanilla randomly selected appraiser following USPAP.

I've had many clients "graduate" from what I offer as a conventional lender into the fix-n-flip world that I do not really participate in, and the ones that got slamming deals back when they were working with me tend to have mostly (but not entirely) positive things to say about Lima One.

So I guess the lesson learned is that if you absolutely 100% have a slamming deal, take Lima One's offer of a single digit rate and less than 2 points, and go forward with the application. If you're still learning and this is your first flip, or if your ARV will not pass muster according to USPAP appraisal methodology, don't waste your time trying to work with Lima One, just take the 12% and 3 points from a bottom feeder HML. Loans are priced according to risk...

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  • Justin Thompson
    Lender · Greenville, SC · Member since 2012 · 25 posts · 5 votes
    8y

    Myles,

    At Lima One Capital we pride ourselves in our ability to provide industry leading investor financing paired with a great customer service experience. I'm very sorry your experience did not meet that. We always strive to be transparent in our programs, process, and fees.

    Myles, our support team will be in touch with you directly.


    Thank you,


    Lima One Capital

    2Reply
  • Paul Anthony Ironmonger
    Member since 2018 · 1 post · 0 votes
    8y

    Justin could you reach out to me directly....

    Paul Ironmonger

    0Reply
  • Princess London
    Member since 2018 · 1 post · 6 votes
    8y

    We had a mediocre experience with them as well. Decided to cancel the application altogether and seek another way to get funded. They certainly don’t fund loans in the time they say they will, and underwriting must be staffed with one person. The sales rep I was in touch with was less than stellar at communication. Definitely wouldn’t recommend anyone use them. I’m glad we did not get to the point of being funded. We put the application in and then radio silence. I’ve read a lot of similar stories.

    6Reply
    • Jonathan Chan
      Lender · Clermont, FL · Member since 2020 · 168 posts · 87 votes
      6mo
      Quote from @Princess London:

      We had a mediocre experience with them as well. Decided to cancel the application altogether and seek another way to get funded. They certainly don’t fund loans in the time they say they will, and underwriting must be staffed with one person. The sales rep I was in touch with was less than stellar at communication. Definitely wouldn’t recommend anyone use them. I’m glad we did not get to the point of being funded. We put the application in and then radio silence. I’ve read a lot of similar stories.


       Did you end up working with another lender?

      0Reply
  • Jeremy Masson
    Flipper/Rehabber · Atlanta, GA · Member since 2017 · 14 posts · 17 votes
    7y

    @Myles Daniel I agree, stay far away from Lima One and search for other hard money if you cannot find private funding. I also had a horrible experience recently with Lima One Capital that left me with a lost deal 3 days before closing. Their team also did not explain processes, waits too long to review and communicate items back to their customers. Lima One Capital review average on all online platforms is mixed to negative at best. I was in a hard place and needed a new lender asap and was referred to Lima One. Two items they are terrible at is their communication and transparency. They are also very "salesy". One of their fix and flip sales consultants, Brandon Campbell, bombarded me with calls for 6 months. I finally decided to move forward with them because I lost my main lender due to them being bought out and canceling programs. I later find out he's just your typical salesman who once he gets you in the door, communication goes out the window. 

    I was approved for funding, working on my third flip in 6 months, and everything was going somewhat smoothly. Then their third party appraiser, who they swore was vetted, appraised the home $60K below my ARV. I was at a loss for words because I have a financial background and I run numbers very well, and also do not try to make a bad deal work like a lot of flippers. I contested and it was raised $15K. So I either had to bring $40K more to the deal or the seller had to drop the price; neither happened and weeks of work and money was lost. No one took responsibility for this appraiser and his work, as being that far off is unheard in Atlanta. The appraiser did not have any online reviews which also told me he does not do a lot of appraisals, or has another full-time job. I've also been doing this long enough to know values of homes.

    Again, their are plenty of hard money lenders out there that are a lot better than the level of service you'll receive from Lima One Capital.

    8Reply
  • Jeremy Masson
    Flipper/Rehabber · Atlanta, GA · Member since 2017 · 14 posts · 17 votes
    7y

    @Myles Daniel I agree, stay far away from Lima One and search for other hard money if you cannot find private funding. I also had a horrible experience recently with Lima One Capital that left me with a lost deal 3 days before closing. Their team also did not explain processes, waits too long to review and communicate items back to their customers. Lima One Capital review average on all online platforms is mixed to negative at best. I was in a hard place and needed a new lender asap and was referred to Lima One. Two items they are terrible at is their communication and transparency. They are also very "salesy". One of their fix and flip sales consultants, Brandon Campbell, bombarded me with calls for 6 months. I finally decided to move forward with them because I lost my main lender due to them being bought out and canceling programs. I later find out he's just your typical salesman who once he gets you in the door, communication goes out the window. 

    I was approved for funding, working on my third flip in 6 months, and everything was going somewhat smoothly. Then their third party appraiser, who they swore was vetted, appraised the home $60K below my ARV. I was at a loss for words because I have a financial background and I run numbers very well, and also do not try to make a bad deal work like a lot of flippers. I contested and it was raised $15K. So I either had to bring $40K more to the deal or the seller had to drop the price; neither happened and weeks of work and money was lost. No one took responsibility for this appraiser and his work, as being that far off is unheard in Atlanta. The appraiser did not have any online reviews which also told me he does not do a lot of appraisals, or has another full-time job. I've also been doing this long enough to know values of homes.

    Again, their are plenty of hard money lenders out there that are a lot better than the level of service you'll receive from Lima One Capital.

    1Reply
  • Saji Ijiyemi
    Woodstock, MD · Member since 2016 · 44 posts · 14 votes
    7y

    @Justin Thompson, currently talking to Lee Mahaffey at LimaOne Capital. Lee took over my application after the original consultant in charge of my account quit without warning. I've gotten my pre-approval letter. Now, Lima One is saying they want to do Appraisal and Inspection prior to closing. I bought this (REO) property at Auction and the Seller said there will be no access to the property prior to closing. I wasn't told earlier that Lima One Capital will be doing appraisal... this alludes to the clear communication and transparency other people are pointing to in this forum. Could you please let me know if this is the standard Lima One practice? I don't want too much surprises. Thank you.

    3Reply
  • Myles Daniel
    OP
    Member since 2018 · 12 posts · 18 votes
    7y

    I’d get out now if I could. You are in for many more surprises and a huge down payment. Good luck. I’d try Finance of America. That is who I’ve been using. They are cheaper and more organized. They aren’t perfect, but they are much, much better than Lima One

    2Reply
  • Alex S.
    Contractor · Atlanta, GA · Member since 2016 · 66 posts · 13 votes
    7y

    I've used Lima on 6 of my flips and so far they have been great for me. Except one time I had a big problem with an incompetent appraiser who almost killed my deal. However the seller agreed to drop the price, which worked in my favor, because I sold it 8 weeks later and the appraiser was off 45K. The Lima appraiser was off that much and I knew she was from the beginning, but it worked in my favor. So thank you to her, I got the house at a much lower price.

    1Reply
  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    7y

    The business model of many hard money lenders is to get as many applications in the door as possible, and cherry pick the safest ones, and only fund those ones. This is especially true if the HML is on the better side of rate/fees, which by all reports Lima One is. The hard money lenders with the trash rates, trash terms, trash conditions... yeah, they'll fund with fewer questions asked.

    I'm not going to say any of the above comments are wrong, or that the experiences of the folks posting are invalid, but if you want that super top notch terms/fees/rates hard money loan, then your DEAL needs to also be super top notch, even to a vanilla randomly selected appraiser following USPAP.

    I've had many clients "graduate" from what I offer as a conventional lender into the fix-n-flip world that I do not really participate in, and the ones that got slamming deals back when they were working with me tend to have mostly (but not entirely) positive things to say about Lima One.

    So I guess the lesson learned is that if you absolutely 100% have a slamming deal, take Lima One's offer of a single digit rate and less than 2 points, and go forward with the application. If you're still learning and this is your first flip, or if your ARV will not pass muster according to USPAP appraisal methodology, don't waste your time trying to work with Lima One, just take the 12% and 3 points from a bottom feeder HML. Loans are priced according to risk...

    9Reply
  • Garrett Pearson
    Addison, IL · Member since 2018 · 72 posts · 24 votes
    7y

    Jeremy Masson Thanks for the heads up. Do you have any recommendations of other lenders that you have had success with?

    7Reply
  • Alan Watkins
    Investor · Atlanta, GA · Member since 2017 · 2 posts · 0 votes
    7y

    At least they responded to you...Applied for a loan, they pulled my credit, I sent them what they asked for, and I never heard back. I have had several HML before and am a licensed builder and agent. Fortunately I had another financing source or I would have lost deal and deposit.

    0Reply
  • Jeremy Masson
    Flipper/Rehabber · Atlanta, GA · Member since 2017 · 14 posts · 17 votes
    7y

    @Garrett Pearson Sorry, did not get a notification ping. Baker Collins is a decent lender. I live in Atlanta, so I do not know if they are national. The appraisal on the purchased property went smoothly. The only item that did not go smoothly was their inspector. This seems to be a newish practice with a lot of hard money lenders. There is an in-house inspector who reviews your construction budget and inspects the property. He wanted to add $20K to my budget 2 days before closing. I run my numbers tight and get accurate quotes from my contractors. We ended up negotiating down to $4K to get it funded, because he was off on most of his findings. I think this is a "the few ruin it for the majority" type of scenario now with lenders. Many hoops to jump through to fund a loan. I have a 800+ credit score, cash, 3 successful flips and still have to dance. 

    It's extremely hard, but my advice to anyone is to keep plugging away in securing private money. Hard money imo is a funding option, not the only solution. 

    3Reply
  • Garrett Pearson
    Addison, IL · Member since 2018 · 72 posts · 24 votes
    7y

    @Jeremy Masson Thanks for the feedback. I'm glad it worked out for you. I'm working with a mortgage broker that got me approved with LimaOne. She said once I get my first deal done, she can get me with another lender that have much better rates. I'm still searching for that first deal. It's tight out here. I'll see how it goes.

    1Reply
  • Michaela G.
    Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    7y

    I've tried several times to work with Lima, but was turned down by some massmail. 

    First time was because I didn't have 2 credit cards that were older than 2 years. 2nd time because I didn't have 3 credit lines (they went up) that were older than 2 years. Third time because they insisted that I needed to have a separate EIN for my LLC. It's a single-member entity and everything is pass-through to my social security number. In Georgia it's not necessary to have a separate EIN in that case. But they insisted.

    I have many rehabs under my belt in the past 25 years and my credit score was above 700. For many years I just dealt with cash, because you can't get mortgages on 10k houses, so, I didn't have credit cards. Only 1. 

    These days I would not even consider them, because of the experience I've made. 

    5Reply
  • Garrett Pearson
    Addison, IL · Member since 2018 · 72 posts · 24 votes
    7y

    @Michaela G. WOW! They really sent you through the wringer. Well you sound pretty seasoned and obviously you have done okay without them. Good for you. Thanks for sharing your experience.

    0Reply
  • Terri Dyer
    Gering, NE · Member since 2017 · 20 posts · 19 votes
    7y

    Yes stay as far away from Lima One as you can!    They jacked our interest rate up 1% without saying anything a day or so before closing Which our title company was the one to catch it.

    Both our title company and insurance company had red flags about them and had nothing but nightmares dealing with them at closing.

    They make the account have escrow.   Then they decided to not pay 2 of my houses insurance and let them lapse.   Causing me to double pay it and have a late fee.  

    Then I got a notice from them saying all of my houses were in flood plains and needed flood insurance which was not at all accurate.   Non of my properties are in flood plains.

    They have all kinds of extra fees and junk you will end up paying.

    I don’t trust them and went to refinance.   Of course they are unwilling to waive the pre-payment penalty because “it’s in the contract”.   Which I also let them know it’s in the contract they pay my insurance and they didn’t seem to care about the contract then.

    I got my pay off letter from them that was off by about $5,000.   Which I called them out on and they fixed and said yes I was right.   However I wonder if I didn’t catch it and paid it if I ever would have seen any of that $ back???

    These are just the major issues I had with them along with little issues all along the way.   I’ve reported them to consumer financial protection agency and better business bureau and they have yet to respond to either complaint.

    The company is very incompetent along with down right illegal practices.  Stay away from this company!

    4Reply
  • Myles Daniel
    OP
    Member since 2018 · 12 posts · 18 votes
    7y

    Thanks for sharing. They need to be held accountable! 

    1Reply
  • Ed Johnson
    Flipper/Rehabber · Atlanta, GA · Member since 2019 · 6 posts · 0 votes
    7y

    So.By read everyone comments what's a great HML to used in the Atlanta Area , with a 748 Credit Score ?

    0Reply
  • George DespotopoulosBusiness Member
    Lender · New York, NY · Member since 2016 · 936 posts · 287 votes
    7y
    Originally posted by @Ed Johnson:

    So.By read everyone comments what's a great HML to used in the Atlanta Area , with a 748 Credit Score ?

    Ed, what do you have going on? Have you invested before?  

    MoFin Lending4.9152 Reviews
    WebsiteView Page
    0Reply
  • Dante Foreman
    Investor · Owensboro Ky · Member since 2018 · 183 posts · 68 votes
    7y

    @Terri Dyer Hey I am currently pre-approved through Lima One they've been responsive and transparent and upfront so far. When did the problems arise for you

    2Reply
  • Terri Dyer
    Gering, NE · Member since 2017 · 20 posts · 19 votes
    7y

    It started during the closing process and continued even after closing.   Even my insurance agent and title company weren’t happy with Lima One and had red flags about them.

    1Reply
  • Terri Dyer
    Gering, NE · Member since 2017 · 20 posts · 19 votes
    7y
    Originally posted by @Myles Daniel:

    Thanks for sharing. They need to be held accountable! 

     Im trying with reporting them but not really getting anywhere.  I’m debating if it’s worth taking them to court over or not.?   I don’t want to be out even more money with lawyers fees but because of the morales of it and you are right they need to be held accountable for illegal practices and in-competence.

    0Reply
  • Aracelly Vargas
    Member since 2019 · 1 post · 1 vote
    6y

    I wish I found these reviews before, I been trying to close a construction loan with them for almost 30 days.

    The lack of communication is there, I waited 10 days to compete the appraisal for A LOT I paid 550 for the appraisal and they didn’t mentioned to me anything about those fees. Certainly they asked me to paid them before they move forward w the full approval. I finally got approved and the approval letter with the numbers does not make any sense at all, I asked for an explanation nobody can explain it to me. Today 11/22, 2 days after the approval letter has been received they said they are not able to close this month we will have to wait until next month! Seriously? Come on your dealing with investors every day cost us money... lower rates but It really doesn’t matter you gonna lose more money waiting than paying little more of interest 
    also I am concern about the draws.. are the draws gonna be the same drama as this ridiculous closing process... 🧐🧐🧐🤔

    1Reply
  • Branden Bufford
    Member since 2018 · 2 posts · 1 vote
    6y

    My experience has not been terrible, yet. I was working with Lima One through a 3rd party called Spectrum Funding. Spectrum would help me get the credit cards and liquidate them and they would also get me a loan with Lima One in the process. A 5/1 ARM loan.

    I was looking to get a house and what made me pump the brakes is when I put an offer in and the seller said they do not accept Lima One. The broker said that the seller has a good amount of experience and Lime One has not been good to them. 

    Along with my below-average communication with Spectrum and that denial from the seller and other small things, I felt the Real Estate gods telling me not to go further with Lima One. I'm still using Spectrum for my CC liquidation and will keep it moving. 

    0Reply
  • Joel Perez
    Waukegan, IL · Member since 2017 · 11 posts · 2 votes
    6y

    Damn, & I was just about to apply w them . 


    Does anyone recommend a good HML in Wisconsin or Illinois ?

    1Reply
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