Recent Experience with LendingOne

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Recent Experience with LendingOne

Kate B.
Rental Property Investor · Member since 2019 · 22 posts · 28 votes

I was recently referred to LendingOne by a fellow investor and just wanted to share my experience thus far as I feel there's a lot of marketing bait and switch happening with lenders that advertise terms and loan structures...

Our past and current project:  We do buy-rehab-refi-hold (airbnb) rentals, not regular rehab flips.

First off let me start with the things I think LendingOne excels at:

  1. Nice dashboard to upload and store all your documents to track how the loan process is coming along. 
  2. They followed up right away on my pre-approval application that I submitted online.
  3. The appraisal (which usually seems to be a bottleneck with other lenders) reached out right away, even before my term sheet was finalized.

Now here is where I feel a bit frustrated with their product marketing and what I actually got. And please don't comment that rates, terms, loan structure are variable. I know that :)   I have great credit 740+ FICO, a few flips under my belt and this current project isn't complicated ($110k purchase price, $20k rehab for cosmetic fixes).

  1. They pulled credit before my term sheet was issued :(   
  2. 90% LTV on purchase / 100% LTV on rehab (What they sent: 65% LTV on purchase / 100% Rehab)
  3. Rates starting at 7.49% for 12 mos  (What they sent: 10.49% + 2.75% Loan Orig)
  4. We have a tight close date and I have to call the Account Executive everyday to find out what the status of the loan is, term sheet, etc..


I'm not sure if I will use them for this project as I have already received 90% LTV for purchase and rehab, 9.49%, 12 mos, 1% loan orig, from another source but I wanted to try them as I heard many good things about them from other investors.

I'd like to hear from others that have used them if they've had a similar experience?

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Denise Brown-PuryearPro Member
Rental Property Investor · Julian, NC · Member since 2016 · 76 posts · 100 votes
7y
Originally posted by @Derek Caffe:

I'm currently in the process of using LendingOne for a rental acquisition. So far the rep is rather responsive. I have a little concern as I offered a shorter financing contingency and appraisal contingency based on how fast it was stated they could close loans, but not entirely sure they can deliver yet. Looking forward to a successful transaction with LendingOne, but only time will tell. I definitely let anyone know how it turns out if they @ me in the future. Glad to have reps on BiggerPockets from the company in order to get in potential kinks ironed out ahead of time for a successful closing.

@John Della Bella, @Matthew Neisser

 I was thinking about using them as well and have spoken to a rep.  But based on the above feedback (especially regarding the purchase, rehab, refi and hold), I have some doubts.  I'm leaning between LendingOne and Lima Capital.  I really don't like the baiting and switching that goes on.  Put your cards on the table after the initial review rather than tie up and waste an investor's time.  Then a decision can be made whether or not to proceed based on the final approval.  Sounds a little bit scamish to me.  And I've been doing this a very long time.  I have no problem with anyone trying to make their money... they just need to be straight up about their fees.  Just saying........

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  • John Della Bella
    Lender · Boca Raton, FL · Member since 2017 · 30 posts · 13 votes
    6y

    Hi, @Trevor Winder. My name is John Della Bella. I lead the Sales team at LendingOne. I saw your message on here regarding poor communication on LendingOne's end. I just left you a message but did not see an active file for you in our system. Please reach out to me so I can resolve any issues that you may have. Thank you.

    1Reply
  • Denise Brown-PuryearPro Member
    Rental Property Investor · Julian, NC · Member since 2016 · 76 posts · 100 votes
    6y
    Originally posted by @Trevor Winder:

    @Denise Brown-Puryear I am about to close with LendingOne and the communication is subpar. Can you tell me more about your experience with Lima as I am in the process of onboarding more investors and I don’t want these new investors to have a crappy experience as that obviously reflects poorly on me. Basically, I’m shopping around. I just need to know the terms so I can manage expectations for me and my investors. Highly frustrated!

    I ended up not using LendingOne based on earler feedback and went with another company which is local although they have a larger nationwide network.  Deal closed a few months ago and I'm preparing to work on a rehab deal with them in 2020.  Message me privately for more info. 

    0Reply
  • Joe Horan
    Real Estate Investor · Indianapolis, IN · Member since 2017 · 59 posts · 33 votes
    6y

    I recently used LendingOne. I'd do it again since it all worked out. They were pretty fast and were ready to close within 10 days. 

    I paid, what feels like a ton, in fees. But I didn't have a track record with them. They based underwriting off the deal, my credit score and my bank balance/statements. Even with the fees, I made a pretty good amount on the deal. Combined with that and their speed, I'll use them again. 

    0Reply
  • Vincent Chen
    Real Estate Investor · Philadephia, PA · Member since 2016 · 214 posts · 36 votes
    6y

    @Tchaka Owen Can I know which hard money lender do you suggest if I would like to build my flip team in Indy?

    0Reply
  • Account Closed
    Baltimore, MD · Member since 2014 · 88 posts · 8 votes
    6y

    @Derek Caffe did you end up using Lending One? If so, how was your overall experience with them?

    0Reply
  • Derek Caffe
    Real Estate Broker · Austell, GA · Member since 2013 · 72 posts · 24 votes
    6y

    Yes, @Account Closed, I closed on my rental with LendingOne. I also recommended them to a client of mine who was having issues with a traditional bank and he closed with them on a rental property. As far as experience, as mentioned by others, it was a bit rough. This had to do with lack of communication between Lender and borrower. However, because of my first experience I was able to get my client's loan closed with no issues with LendingOne. I do plan to use them again.

    1Reply
  • Account Closed
    Baltimore, MD · Member since 2014 · 88 posts · 8 votes
    6y

    Ok, thanks for that response! @Derek Caffe

    0Reply
  • Rodney Roberts
    Member since 2019 · 5 posts · 1 vote
    6y

    Trying to close a deal with lendingone and two before closing, they want to change the term sheet last minute. Is that possible.

    0Reply
  • Kerry BairdPro Member
    Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
    6y

    I had the same thing, but it seemed to be an accident. I closed with the rate that was quoted, and not on the “mistaken” rate sheet. Mine was a bridge product, when a pretty house under contract was hit and damaged by hail. They rolled with it and got me a renovation loan, which got the house closed and then renovated. 

    0Reply
  • Richard Marquez
    Member since 2019 · 1 post · 0 votes
    6y

    Bad service. Don't use.

    0Reply
  • John Della Bella
    Lender · Boca Raton, FL · Member since 2017 · 30 posts · 13 votes
    6y

    I just wanted to let everyone know that the 30-year rental is available again at LendingOne!

    1Reply
  • Denise Brown-PuryearPro Member
    Rental Property Investor · Julian, NC · Member since 2016 · 76 posts · 100 votes
    6y

    @Tiesha Mobley.  Just wondering did you end up obtaining financing from Lending One.  If so, how did it go?  Thanks.

    0Reply
  • Account Closed
    Rental Property Investor · Usa · Member since 2020 · 74 posts · 80 votes
    6y

    @Denise Brown-Puryear hello ma’am. I was wondering if limaone was a good company to use if I’m attempting to use the brrrr method. This would be my first time using this method. I contacted them today and was told for my deal I would need 30% down on a 30 year portfolio loan. The deal consists of a 3 unit acquisition. Do you know of any other hml with better numbers? 

    0Reply
  • Account Closed
    Baltimore, MD · Member since 2014 · 88 posts · 8 votes
    6y

    Hi @Denise Brown-Puryear, no, I didn't obtain financing from Lending One.

    0Reply
  • Justin Goldberg
    Investor · Member since 2020 · 7 posts · 2 votes
    6y

    Originally posted by @Jay Hinrichs:

    @Kate B.  not sure about your experience but the second loan you got sounds like a great deal.

    most lenders really price by experience to get the really low rates very few will qualify for the best rates..

    Experience has more weight that fico in the HML world. And most lenders will advertise the 90 /100 but not to exceed ARV of 65 to 75% .. so unless you get a smokin deal.. which most cant get now in the market today.. U usually have to bring some cash into the deal that is more than 10%.. what I really watch out for is JUNK fee's you may have 1 point origination but by the time you add up the junk fee's your really paying about 4 points or more.. this is the only way they can stay in business.. there is no way a lender can do a loan as you describe and the sum total of their income is 1200 bucks..


    Jay,

    Your comment has me thinking someone could make a private social network where newer flippers can find hard money lenders, and their profile can include assets, experian boost (or experian connect) type of data (Experian boost connects to bank accounts to show financial stability [good for marketing data!]), credit score with the MyFICO forum badges, etc.... Otherwise if you had a bad experience with HML, how do you prove that you flipped a property to a different HML?

    But I digress, it's better to do due diligence up front and thoroughly research the hard money lender.

    0Reply
  • Dwayne Powell
    Member since 2018 · 1 post · 0 votes
    5y

    what is the name of the other company you decide to go with instead

    0Reply
  • William Craig
    Rental Property Investor · Upper Valley and beyond, Vermont and New Hampshire · Member since 2017 · 10 posts · 2 votes
    5y
    Hey, thanks everyone for this thread. It seems to have quieted down, but I have appreciated the information. I am working with LendingOne right now, as I make final decision on loan to buy 3-unit building.
    So far, I have experienced no bait/switch, just straightforward and helpful dealings.
    I have asked for detailed closing costs, to look for "junk fees" some HMLs charge, as discussed in this thread. Will report on what I get.
    Representative is very definite about ability to close in 20 days. Again, I'll report.
    I have been told that $550 appraisal fee is refundable if I choose not to go with LendingOne. That seems remarkable. If I don't use LendingOne, I'll report on refund.
    Rep has offered 30-year fixed, has said he expects I'll qualify for 4.5% rate. LendingOne charges 1.75 points as doing-business fee, but if I qualify for 4.5 and compare to banks where I'd pay 1 point to get 4.5---  with no hope of fast closing, among other drawbacks---  1.75 would be alright. Again, I'll report.
    And I'll hope John Della Bella is still monitoring this thread! Bestwishes to all---
    Bill
    1Reply
  • Matt Devincenzo
    Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
    5y
    Originally posted by @William Craig:
    Hey, thanks everyone for this thread. It seems to have quieted down, but I have appreciated the information. I am working with LendingOne right now, as I make final decision on loan to buy 3-unit building.
    So far, I have experienced no bait/switch, just straightforward and helpful dealings.
    I have asked for detailed closing costs, to look for "junk fees" some HMLs charge, as discussed in this thread. Will report on what I get.
    Representative is very definite about ability to close in 20 days. Again, I'll report.
    I have been told that $550 appraisal fee is refundable if I choose not to go with LendingOne. That seems remarkable. If I don't use LendingOne, I'll report on refund.
    Rep has offered 30-year fixed, has said he expects I'll qualify for 4.5% rate. LendingOne charges 1.75 points as doing-business fee, but if I qualify for 4.5 and compare to banks where I'd pay 1 point to get 4.5---  with no hope of fast closing, among other drawbacks---  1.75 would be alright. Again, I'll report.
    And I'll hope John Della Bella is still monitoring this thread! Bestwishes to all---
    Bill

    Any update here Bill?

    0Reply
  • Serge Adzinets
    Investor · Austin, TX · Member since 2015 · 4 posts · 7 votes
    5y

    Here is my experience with LendingOne. I applied for a rental loan as their Investor Select product looked compelling - it had a comparatively low 3.6% interest rate for investors with a W-2. Everything was going smoothly initially. There were some questions from the underwriter about me having enough assets but they were addressed (or so I thought) as I got the preliminary closing disclosure. Then on the day we were supposed to close I learned that we did not have have enough "liquid assets". It looked like they required 6-monts reserves for each property you own. Hard to know for sure as the loan officer was clueless, he did not seem to understand what the underwriter was saying and was only able to convey "notes" from the underwriter. He was not able to explain what the cash or asset requirements really were. To make things worse, most of the communication with the underwriter took a day as they "were swamped". We spent a week trying to make it work with LendingOne but it was a waist of time. No one there was interested in lending to us.

    3Reply
  • Serge Adzinets
    Investor · Austin, TX · Member since 2015 · 4 posts · 7 votes
    5y

    Update: the VP of Sales reached out to me apologizing for the bad experience we had and helped to close our deal quickly. I am glad the leadership at LendingOne cares about the client experience and hoping they will improve their processes.

    4Reply
  • Tina McGlothin
    Investor · Live in Washington, Invest in Indiana · Member since 2019 · 5 posts · 3 votes
    4y

    This thread has been an amazing amount of help and knowledge. Thank you all who shared their experiences with Lending One, Lima, SIL, and MoFin. I'm in the market to cash out refi a duplex I own in Indiana under my LLC with the hopes to buy a lot more in 2022 so this thread was extremely helpful!

    0Reply
  • Angelique J.
    Member since 2023 · 2 posts · 0 votes
    3y
    Quote from @Perry Farella:
    I cant comment direct about your experience. But I always like to point out what I think may be a good alternative for small investors owning less than 5 currently mortgage properties. This is not a box everyone will fit and I get that. But here are the highlights to consider: -If you can do a 15% down payment on sum of purchase price and rehab dollars this can work. - Single family homes to rehab and hold or to fix & flip - Loan is in your name not your LLC - Rates between 5% and 6% depending on credit score - 30 year term loan, fixed rate, no pre payment penalty if sold or paid off anytime - Example buy at 100,000 and add 50,000 for rehab = 150,000 means 15% down payment or 22,500 - So the buy is financed at 85% and so is the rehab if you look at it that way - House will be appraised off a contractors write up of the work to be done and must appraise out ARV to at least the 150,000 to make sense at all; if not loan is not approved so a buyer cannot get into trouble in that sense with lender oversight - all work must be done by licensed trades people, not the own themselves If this sounds plausible I'm happy to answer questions.

     Hi , I am new here and found this post although it is 4 years old-can you provide info on this type of loan?

    0Reply
  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    3y
    Quote from @Angelique J.:
    Quote from @Perry Farella:
    I cant comment direct about your experience. But I always like to point out what I think may be a good alternative for small investors owning less than 5 currently mortgage properties. This is not a box everyone will fit and I get that. But here are the highlights to consider: -If you can do a 15% down payment on sum of purchase price and rehab dollars this can work. - Single family homes to rehab and hold or to fix & flip - Loan is in your name not your LLC - Rates between 5% and 6% depending on credit score - 30 year term loan, fixed rate, no pre payment penalty if sold or paid off anytime - Example buy at 100,000 and add 50,000 for rehab = 150,000 means 15% down payment or 22,500 - So the buy is financed at 85% and so is the rehab if you look at it that way - House will be appraised off a contractors write up of the work to be done and must appraise out ARV to at least the 150,000 to make sense at all; if not loan is not approved so a buyer cannot get into trouble in that sense with lender oversight - all work must be done by licensed trades people, not the own themselves If this sounds plausible I'm happy to answer questions.

     Hi , I am new here and found this post although it is 4 years old-can you provide info on this type of loan?


    Hi Angelique - what its describing is typically described as a "hard money loan" or "bridge loan" and the 30-year fixed option with no prepayment loan would be an alternative type of "DSCR" loan (DSCR loans often have prepayment penalties but can sometimes be flexible and have no prepayment penalty)

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    0Reply
  • Angelique J.
    Member since 2023 · 2 posts · 0 votes
    3y
    Quote from @Robin Simon:
    Quote from @Angelique J.:
    Quote from @Perry Farella:
    I cant comment direct about your experience. But I always like to point out what I think may be a good alternative for small investors owning less than 5 currently mortgage properties. This is not a box everyone will fit and I get that. But here are the highlights to consider: -If you can do a 15% down payment on sum of purchase price and rehab dollars this can work. - Single family homes to rehab and hold or to fix & flip - Loan is in your name not your LLC - Rates between 5% and 6% depending on credit score - 30 year term loan, fixed rate, no pre payment penalty if sold or paid off anytime - Example buy at 100,000 and add 50,000 for rehab = 150,000 means 15% down payment or 22,500 - So the buy is financed at 85% and so is the rehab if you look at it that way - House will be appraised off a contractors write up of the work to be done and must appraise out ARV to at least the 150,000 to make sense at all; if not loan is not approved so a buyer cannot get into trouble in that sense with lender oversight - all work must be done by licensed trades people, not the own themselves If this sounds plausible I'm happy to answer questions.

     Hi , I am new here and found this post although it is 4 years old-can you provide info on this type of loan?

    Thanks so much-I am enjoying reading through all of this-I appreciate the reply-very helpful-

    Hi Angelique - what its describing is typically described as a "hard money loan" or "bridge loan" and the 30-year fixed option with no prepayment loan would be an alternative type of "DSCR" loan (DSCR loans often have prepayment penalties but can sometimes be flexible and have no prepayment penalty)


    0Reply
  • Porsha Fross
    Member since 2023 · 35 posts · 10 votes
    2y
    Quote from @Derek Caffe:

    I'm currently in the process of using LendingOne for a rental acquisition. So far the rep is rather responsive. I have a little concern as I offered a shorter financing contingency and appraisal contingency based on how fast it was stated they could close loans, but not entirely sure they can deliver yet. Looking forward to a successful transaction with LendingOne, but only time will tell. I definitely let anyone know how it turns out if they @ me in the future. Glad to have reps on BiggerPockets from the company in order to get in potential kinks ironed out ahead of time for a successful closing.

    @John Della Bella, @Matthew Neisser

    @Derek Caffe how was your experience with LendingOne?

    0Reply
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