Rental Property Investor · Columbus, OH · Member since 2015 · 344 posts · 258 votes
Hello all,
I'm curious if anyone has or is currently working with Lima One Capital? In perusing some other forum posts, experiences seem to be mixed. Though the negatives seem to be centered on spotty communication from them, not necessarily shady business practices with any of their products.
What have your experiences been? Good/bad? If bad, why? If good, what have you enjoyed, and is there still room for them to improve?
For what it's worth, the rep I've been emailing with in my initial inquiry phase with them has been great. He's answered all my questions and been proactive in providing additional info to me.
Any information is much appreciated. Thank you all!
Lima One has both good and bad. They do have fairly decent rates and points for experienced investors.Even rental rates are decent if you're over the 10 for loans in your name and need/want to put in your LLC. A couple of things to be mindful of:
1. Closing with them is a minimum of 3 hours. No joke. See why below.
2. Use a closing attorney that has worked with them before. Not the guy/gal that does your retail closings. They scrutinize to make sure every i dotted and t crossed. Their closing requirements for the attorney are like none I’ve seen. Some attorneys won’t work with them. I almost lost a seller because he wouldn’t leave the table until he, understandably, got his money, 4 hours later with lunch in between.
3. On rental mortgages they now keep in house instead of selling the mortgage and it’s a mess. You don’t get a monthly statement...unless you request and they send some weird “statement of account.” Note due on the 10th of the month, late on the 11th.
4. They don't send a 1098 on rentals at the end of the year if you are a multiparty LLC. We have just 2 members and they told me just look on your statement of accounts.
5. 5-year prepayment penalty on all rental loans. This isn’t discussed unless you ask so make sure it’s at least a medium term hold.
6. Sales Staff is generally nice, but they were growing fast and seems like a lot of turnover with inexperienced staff. Service staff depends on who you get, but if you have a question on, say your escrow, good luck. Call, don’t email or you won’t get an answer.
7. Expect a low ball appraisal. It’s there way of protecting themselves. Just part of the game.
8. Make sure you have enough cash to start you're flip as, with most HML, you start work then get draw. They give you 5 draws at $200 each.
I just closed on a loan with them for a rehab/flip. They are legit. Communication with my rep has been great. Had another loan fall out with them as actual value too low for them. I ended up paying for that project myself. They can be slow sometimes. Rates are pretty competitive. They have their limitations. I'd like to give them more business now that I'm more familiar with working with them, but I had to take a few other deals elsewhere for a higher refi LTV. Overall they're fine and they do try to find a way to make a deal work. I'll use them again.
They are not to bad Communication was never a problem for me. I have done three deals with them and everything has gone as planned. only problem is that in my market (Chicago) they have raise the min purchase price up and that eliminated a lot of properties that in am interested in flipping.
@Eric Smith ah, ok. Thanks for the input! That's definitely good to know. Were they pretty straightforward and simple with the closing process, as well as, the rehab draws?
@David de Luna thanks for the input! When you say one deal fell through because actual value was too low. Is that the initial purchase or post rehab ARV?
I'm curious if anyone has or is currently working with Lima One Capital? In perusing some other forum posts, experiences seem to be mixed. Though the negatives seem to be centered on spotty communication from them, not necessarily shady business practices with any of their products.
What have your experiences been? Good/bad? If bad, why? If good, what have you enjoyed, and is there still room for them to improve?
For what it's worth, the rep I've been emailing with in my initial inquiry phase with them has been great. He's answered all my questions and been proactive in providing additional info to me.
Any information is much appreciated. Thank you all!
I've had several past clients "graduate" from residential/Fannie 1-4 unit stuff with me, to a grab bag of commercial, portfolio, fix-n-flip type stuff with them.
They are all about how good of a deal you are getting on the purchase. If you're an average noob getting a "meh" deal, your experience will be bad and your loan will be denied. If you're getting a good-to-great deal, you will have a great experience, close, close fast, and with killer rate/terms (still not as good as Fannie, but great compared to other stuff in this bucket of loans).
@Chris Mason thanks! That makes total sense. Yeah, I'm really viewing working with Lima One, or any HML for that matter, as a tool to eventually be in a position to fund in multiple ways, ideally cash.
Lima One has both good and bad. They do have fairly decent rates and points for experienced investors.Even rental rates are decent if you're over the 10 for loans in your name and need/want to put in your LLC. A couple of things to be mindful of:
1. Closing with them is a minimum of 3 hours. No joke. See why below.
2. Use a closing attorney that has worked with them before. Not the guy/gal that does your retail closings. They scrutinize to make sure every i dotted and t crossed. Their closing requirements for the attorney are like none I’ve seen. Some attorneys won’t work with them. I almost lost a seller because he wouldn’t leave the table until he, understandably, got his money, 4 hours later with lunch in between.
3. On rental mortgages they now keep in house instead of selling the mortgage and it’s a mess. You don’t get a monthly statement...unless you request and they send some weird “statement of account.” Note due on the 10th of the month, late on the 11th.
4. They don't send a 1098 on rentals at the end of the year if you are a multiparty LLC. We have just 2 members and they told me just look on your statement of accounts.
5. 5-year prepayment penalty on all rental loans. This isn’t discussed unless you ask so make sure it’s at least a medium term hold.
6. Sales Staff is generally nice, but they were growing fast and seems like a lot of turnover with inexperienced staff. Service staff depends on who you get, but if you have a question on, say your escrow, good luck. Call, don’t email or you won’t get an answer.
7. Expect a low ball appraisal. It’s there way of protecting themselves. Just part of the game.
8. Make sure you have enough cash to start you're flip as, with most HML, you start work then get draw. They give you 5 draws at $200 each.
Probably too late but I’d avoid them at all costs. Closing was a nightmare and sticker shock with crazy fees and a last minute jump by 2% interest that they didn’t mention the title company caught it. Constant issues. To the last straw when they decided to not pay escrow on insurance on 2 homes and let them lapse. A judge ruled in my favor lecturing them with “their bookkeeping is negligent and best and their attitude about appalling”. Naturally they have appealed and trying to bully me away.