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

Myles Daniel · 2018-09-04T10:40:00-07:00

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!"

Mark F.Pro Member

Rental Property Investor · Elgin, IL · Member since 2016 · 326 posts · 270 votes

6y

@Joel Perez, I've been using Renovo Financial, they are local (Chicago) and are great to deal with, I have had 4 deals thru them since April and each one went smoothly. Reach out to Eric Workman, he is the VP of lending and will help you in any way he can. I will preface the above statement with the fact that I do believe they only lend to investors with experience from my understanding. With that said, the entire team at Renovo are top notch in my opinion.

If you need more or contact information for Eric send me a message.

Mark

2 Reply

Joel Perez

Waukegan, IL · Member since 2017 · 11 posts · 2 votes

6y

@Mark F. thank you for the recommend, I just reached out to him

Im In Waukegan,IL , you’re not too far from me lol

1 Reply

Mark F.Pro Member

Rental Property Investor · Elgin, IL · Member since 2016 · 326 posts · 270 votes

6y

@Joel Perez - yep I saw you were local, let Eric know I referred you and he will take care of you however he can.

1 Reply

Alvaro Soto

Rental Property Investor · Jacksonville, NC · Member since 2015 · 44 posts · 21 votes

6y

@Kyle Brodwater you were right.

1 Reply

William Joseph

Property Manager · Plantsville, CT · Member since 2016 · 84 posts · 66 votes

6y

I have used Lima One for two deals and have done other HML deals in the past. I am not saying all but a lot of these negative critiques are not unique to Lima but germane to all HML deals. With that said, the most disappointing aspect of their company is their underwriting department and customer service. My closing attorney (who is my cousin) will not close a loan with their office because of how difficult they were to deal with and the aggravation on staff. Thus, I stay away from them now. They almost forced me to completely abandon a deal because of their stubborn underwriting department who couldn't see the forest through the trees. If I wanted to jump through all those hoops I would have just applied for traditional financing!

Their points and rates can be very competitive if you have experience. However, if you are going to use their funding you should understand they are not a hard money lender they operate like a traditional lender when it comes to appraisal, inspections, etc.

1 Reply

Jeff Cichocki

Lender · All 50 States · Member since 2015 · 401 posts · 250 votes

6y

@Joel Perez, For your Wisconsin deals, I'd be happy to help if I can.

We use private lenders to back all of our loans. When we give out a loan, you are working with real people throughout the entire process. You are not just a number and we want you to succeed. While we are prepared to take back a house if a deal goes sideways, we don't want to. The highest amount of profit is when a lender helps the borrower succeed so that become a repeat borrower. A good lender cares about your success.

As for the rest of the issues being faced by using companies like Lima One, my advice is to try to find out what kind of funding they use. Most national guys and even many of the larger local guys use Hedge Funds for their backing. We've looked at using HF's on multiple occasions before. We've walked away from every single one of them. As a lender, I can tell you that they generally don't care about you or your success. Sure, their points and interest can be lower, but you pay for expenses that are typically unnecessary, rigid rules, slower processing on the draws and fast foreclosures. They are not everything they are cracked up to be. You have to look deeper into who they are and how they do business. Using a local lender will almost always be your best path. They know your market and can help you if you run into any issues.

Good luck!

2 Reply

Kevin PolitePro Member

Investor · Decatur Atlanta, GA · Member since 2011 · 612 posts · 232 votes

6y

@Justin Thompson so i had sworn off of Lima One for flips as I almost lost 2 deals because it took over 4 hours to close and the seller was getting antsy and now I can get better rates at a local lender.

I decided to try Lima One to buy and hold, wish I hadn't. They keep the loans themselves and servicing has been a nightmare. First they don't send you a monthly statement. You have to request one. Every....single...month. Then now they try to force you to pay through portal at a $3.95 per transaction. So I said I'll just billpay them. Well, I send them out on the 28th of the month PRIOR. It's due on the 10th. If you pay before that the screw it up and put it on the prior month and say your late, So I've tried to time by paying on the 28th and and know it's gets there around the 5th or 6th at the latest. Each month I have to call or write in because they just so happen to receive on the 11th. 3 months in a row. See a pattern here ya'll. I'm almost tempted to pay the 5 year penalty and refinance because I shouldn't have to spend more than a minute or two checking my statements from them to make sure my payments were recorded and were recorded correctly.

My servicer was Celina Schwartz and I think she was just overwhelmed, not incompetent. Then after sending 2 emails and calling I find she is not longer there. Seth Brown is my new servicer. I don't want an individual servicer. I want my money applied on the day it's received, I want my statements emailed monthly without having to ask. Shouldn't be too much to ask. Trying to get a measly $3.95/transaction I'm sure adds up, but adds a real sleaze factor if you ask me.

1 Reply

Kj Rustom

Kennesaw, GA · Member since 2016 · 52 posts · 9 votes

6y

Originally posted by @Jeremy Masson:

@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.

0 Reply

Kj Rustom

Kennesaw, GA · Member since 2016 · 52 posts · 9 votes

6y

Jeremy..

I am in ATL as well. Who did you end up working with ? I am looking for a lender for a SFH refi.

Originally posted by @Jeremy Masson:

@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.

0 Reply

Adam Anderson

Member since 2019 · 13 posts · 3 votes

6y

Originally posted by @Jeremy Masson:

@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.

0 Reply

Adam Anderson

Member since 2019 · 13 posts · 3 votes

6y

Hi Jeremy Masson. Can you recommend hard money lenders you had a good experience with pls?

1 Reply

Robert Neely

Member since 2019 · 10 posts · 5 votes

6y

@Kevin Polite Disclaimer: I work for Lima One.

I've asked a senior analyst in your servicing department to reach out to you to find a solution to make your payments easier. Thank you for your business.

0 Reply

Myles Daniel

OP

Member since 2018 · 12 posts · 18 votes

6y

Everyone here who had a less than positive experience with Lima One needs to be sure to post a review on their google page. They won’t be held accountable unless we make the general public aware. A thread on PB does have an impact, but most people rely on Google more. It’s our responsibility to protect other investors. Here is a link to the review page.

https://g.co/kgs/gD7MST

0 Reply

Lorraine Beato

Real Estate Agent · Cumming, GA · Member since 2015 · 1 post · 2 votes

6y

@Kj Rustom they just came in $55k less on an appraisal on a deal where I am representing the seller. The buyer just closed on another property LAST Friday that is unihabitable per his agent and it appraised $10k higher in the same area. They looked at my CMA and the buyer's agent's comps and agree the appraisal is low but are deferring to the appraiser to change the appraisal and she's pissy because she doesn't want to admit her numbers are way off. I've been in the industry over 25 years and was an appraiser back in NY, it's ridiculous and why I told the buyer's agent up front I didn't have any faith in them.

2 Reply

Kevin PolitePro Member

Investor · Decatur Atlanta, GA · Member since 2011 · 612 posts · 232 votes

6y

@Robert Neely thanks. Seth did. apparently you must request a statement each month and there is nothing he can do unless this is implemented companywide by Lima One. Secondly, he's showing my payment arrived on the 2nd, but he keeps saying I don't see a late charge even though I've sent him a copy of my statement where it clearly shows a late charge. I think the last time this happened Celina sent me something that showed the late charge has been taken off of my account.

1 Reply

Terri Dyer

Gering, NE · Member since 2017 · 20 posts · 19 votes

5y

Update post on Lima One. I took them to court where I won with the judge saying “their bookkeeping practices are negligent at best and their attitude about it appalling”.

They of course are now appealing and continue to try to bully me away.

I encourage anyone with these same experiences to file a complaint with The consumer financial protection agency. With enough complaints they will investigate and file a class action suit against them. In another forum someone is also reporting them to the Secretary of State (Georgia) and going to file with their lending license. With enough complaints we can get somewhere and help others from ending up with the same nightmare putting their investment properties at risk and losing out on thousands of dollars because of their illegal business practices. I have never had a lending company do any of the things I have experienced with Lima One. The list went on and on.

Take a few minute to leave a review on their google. But more importantly file online with consumer financial protection bureau, Secretary of State, and their lending license.

7 Reply

Sylvester Oghenero

Rental Property Investor · Atlanta · Member since 2020 · 5 posts · 0 votes

5y

Thank you all for those valuable information about Lima One...i now know to stay away as i was just pre-approved for financing. Will look for other reputable HML

0 Reply

Dalton Elliott

Lender · Greenville, SC · Member since 2016 · 8 posts · 2 votes

5y

Originally posted by @Terri Dyer:

Update post on Lima One. I took them to court where I won with the judge saying “their bookkeeping practices are negligent at best and their attitude about it appalling”.

They of course are now appealing and continue to try to bully me away.

I encourage anyone with these same experiences to file a complaint with The consumer financial protection agency. With enough complaints they will investigate and file a class action suit against them. In another forum someone is also reporting them to the Secretary of State (Georgia) and going to file with their lending license. With enough complaints we can get somewhere and help others from ending up with the same nightmare putting their investment properties at risk and losing out on thousands of dollars because of their illegal business practices. I have never had a lending company do any of the things I have experienced with Lima One. The list went on and on.

Take a few minute to leave a review on their google. But more importantly file online with consumer financial protection bureau, Secretary of State, and their lending license.

Full disclosure: I work for Lima One Capital.

We are aware of no such lawsuit.

We at Lima One pride ourselves on speed, transparency and integrity in everything that we do. For the sake of all of our investors and their tenants, our loans clearly list requirements that a borrower must maintain through the life of the loan, including requirements about insurance coverage and pre-payment. Once these requirements are agreed to on signed loan documents at the origination of the loan, we enforce these requirements. We have found that they are the best way to ensure our clients’ success and allow us to offer all investors the best financing options possible. Likewise, we expect our borrowers to hold us to our commitments as defined on these signed loan documents.

1 Reply

Jason Shackleton

Investor · Ontario · Member since 2015 · 486 posts · 250 votes

5y

I just added Lima One to my list of lenders that I can now offer clients. I have read through the above comments. They do a very large amount of volume and have some unique products that other lenders simply do not have. Fix and flip, ground up construction etc. Some mentioned getting low appraisals. As an investor myself I know how frustrating that can be. I watched the lender presentation last night and they are working on getting more appraisals done in house. No lender is perfect especially at this size but they do fill a need for certain investors.

1 Reply

Cynthia G.

Investor · Toledo, OH · Member since 2017 · 24 posts · 5 votes

5y

I am currently working with them through a broker and so far everything is good. Hope we can seal the deal without all the issues n run around that was shared on this thread. Thanks to everyone for sharing.

1 Reply

Bob E.

Queen Creek, AZ · Member since 2014 · 2k+ posts · 1k+ votes

5y

@Cynthia G. Thanks for sharing, please let us know how thing turn out.

0 Reply

Cynthia G.

Investor · Toledo, OH · Member since 2017 · 24 posts · 5 votes

5y

@Garrett Pearson if you don't mind me asking who is your broker? Have you heard of or know anyone who's felt with Express lends?

0 Reply

Cynthia G.

Investor · Toledo, OH · Member since 2017 · 24 posts · 5 votes

5y

@Mark Faustrum what is their requirements

0 Reply

Cynthia G.

Investor · Toledo, OH · Member since 2017 · 24 posts · 5 votes

5y

@Robert Neely do you still work for Lima one?

0 Reply

Robert Neely

Member since 2019 · 10 posts · 5 votes

5y

Originally posted by @Cynthia G.:

@Robert Neely do you still work for Lima one?

Yes. is there a question I can help with?

0 Reply

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

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

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