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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  • Perry Farella
    Lender · Chicago, IL · Member since 2016 · 189 posts · 153 votes
    7y
    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.
    9Reply
  • Hip Rodriguez
    Chicago, IL · Member since 2016 · 54 posts · 6 votes
    7y

    @Perry Farella Does the down payment have to be seasoned?

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y

    @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..

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    7Reply
  • Derek Dombeck
    Real Estate Consultant · Wittenberg, WI · Member since 2014 · 572 posts · 572 votes
    7y

    In your post, you never mentioned what the ARV of the property would be. As a lender, this is how we structure, I will lend up to 70% of the ARV. If my client can purchase and rehab for less than that, essentially they get 100% financing, if not, they need to bring cash to close. I don't really think LendingOne is baiting and switching as I'm sure somewhere in there disclosure, they will have a MAX Loan to Value of the ARV. Also, your credit rating is typically secondary in the underwriting decisions of a hard money loan.

    5Reply
  • Kate B.
    OP
    Rental Property Investor · Member since 2019 · 22 posts · 28 votes
    7y

    The ARV is $165k.

    0Reply
  • Jason D.
    Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
    7y

    I just tried to dona cash-out refi on a BRRRR I've completed. They wouldnt do the deal because I don't own my primary residence.... seems odd to not lend on a

    1.4 DSCR property

    700+ credit

    I've been a landlord for 6 years

    This is my second BRRRR

    Make $100k per year.

    I dont own my own residence because I moved from Pa. to Fl. and am renting until I find an area to live more permanently.

    Luckily the asset and my personal finances were enough for other "asset based" lenders to do the deal, and Lending one lost out on future deals.

    4Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Jason D.:

    I just tried to dona cash-out refi on a BRRRR I've completed. They wouldnt do the deal because I don't own my primary residence.... seems odd to not lend on a

    1.4 DSCR property

    700+ credit

    I've been a landlord for 6 years

    This is my second BRRRR

    Make $100k per year.

    I dont own my own residence because I moved from Pa. to Fl. and am renting until I find an area to live more permanently.

    Luckily the asset and my personal finances were enough for other "asset based" lenders to do the deal, and Lending one lost out on future deals.

    that is a strange stip... does lending one have a long term loan product ?? most of the HML are trying to bring those in probably broker them out to other lenders I would suspect

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    0Reply
  • Jason D.
    Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
    7y

    @Jay Hinrichs I thought it was as well. Yes, They offer long term lending.

    1Reply
  • Derek Caffe
    Real Estate Broker · Austell, GA · Member since 2013 · 72 posts · 24 votes
    7y

    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

    1Reply
  • John Della Bella
    Lender · Boca Raton, FL · Member since 2017 · 30 posts · 13 votes
    7y

    @Derek Caffe We are looking forward to closing this deal and future deals together, Derek. Please let me know directly if I can assist in any way. 

    Thanks,

    John 

    3Reply
  • Derek Caffe
    Real Estate Broker · Austell, GA · Member since 2013 · 72 posts · 24 votes
    7y

    @John Della Bella, you stated if you can assist than let you know. Well, I'm reaching out. Please contact me as soon as possible. Thank you.

    5Reply
  • 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........

    14Reply
  • Kate B.
    OP
    Rental Property Investor · Member since 2019 · 22 posts · 28 votes
    7y

    We ended up using LimaOne Capital, they were very professional, closed on time (11 days) and all the numbers were accurate from initial conversation with them to closing. I would highly suggest using them. Message me for the contact who managed our file.

    12Reply
  • Tchaka Owen
    Real Estate Agent · Merritt Island, FL · Member since 2017 · 974 posts · 1k+ votes
    7y
    Originally posted by @John Della Bella:

    Hi, @Denise Brown-Puryear. I’m the Sales Manager at LendingOne. Happy to connect with you this Sunday morning. I can assure you that we will not bait and switch you. Our costs are provided up front, are minimal across the industry, and we will always be transparent. On a fix and flip, once we have your experience verified, then we are relying on the appraisal to come back at the investor’s anticipated after repair value to ensure maximum leverage can be offered. As for the long term option, that pricing is based strictly on your credit score and the amount of leverage you’d like to take. There are only three fees from our company and absolutely no upfront costs charged by LendingOne. I’m happy to jump on a call with you tomorrow to go into details with you. Looking forward to speaking!

    John

    Hello John,

    Can you respond to the comment about not lending to investors who do not own their primary residence?

    Thank you.

    Tchaka

    1Reply
  • John Della Bella
    Lender · Boca Raton, FL · Member since 2017 · 30 posts · 13 votes
    7y

    Hi, @Tchaka Owen. Happy to provide some insight. When completing a refinance, we generally do want to see that an investor owns their primary residence. Being that we only lend on non-owner occupied properties, we want to ensure that funds are being used to reinvest in these particular types of real estate transactions and not being used as a down payment on a primary residence. 

    With that being said, owning your primary is the easiest way to move forward with a refinance, however, it is not a hard stop if an investor doesn’t own their primary. If they currently own a couple of other rental properties, we would definitely look at completing a refinance for them. I hope this provides some clarity around the refinance scenario. Thanks!

    2Reply
  • Denise Brown-PuryearPro Member
    Rental Property Investor · Julian, NC · Member since 2016 · 76 posts · 100 votes
    7y
    Originally posted by @John Della Bella:

    Hi, @Denise Brown-Puryear. I’m the Sales Manager at LendingOne. Happy to connect with you this Sunday morning. I can assure you that we will not bait and switch you. Our costs are provided up front, are minimal across the industry, and we will always be transparent. On a fix and flip, once we have your experience verified, then we are relying on the appraisal to come back at the investor’s anticipated after repair value to ensure maximum leverage can be offered. As for the long term option, that pricing is based strictly on your credit score and the amount of leverage you’d like to take. There are only three fees from our company and absolutely no upfront costs charged by LendingOne. I’m happy to jump on a call with you tomorrow to go into details with you. Looking forward to speaking!

    John

     Hi John.  Just read your response.  We do not fix and flip.  We buy, renovate and rent and have a portfolio of approximately 14 properties (one of which is an AirBnB) and all are rented except 3 units that need final rehab.  In addition, a purchase opportunity has come up next to properties we already own and would like to take advantage of that without using our cash to make the purchase. 

    0Reply
  • John Della Bella
    Lender · Boca Raton, FL · Member since 2017 · 30 posts · 13 votes
    7y

    @Denise Brown-Puryear, that is a very common strategy nowadays. This sounds like something we could assist with. I already have your contact information so we will be reaching out to you very shortly. I am looking forward to connecting!

    Thanks,

    John

    0Reply
  • Tchaka Owen
    Real Estate Agent · Merritt Island, FL · Member since 2017 · 974 posts · 1k+ votes
    7y
    Originally posted by @John Della Bella:

    Hi, @Tchaka Owen. Happy to provide some insight. When completing a refinance, we generally do want to see that an investor owns their primary residence. Being that we only lend on non-owner occupied properties, we want to ensure that funds are being used to reinvest in these particular types of real estate transactions and not being used as a down payment on a primary residence.  

    Is this due to a concern that the investor might actually be refinancing and making a NOO into a primary?

    0Reply
  • Tchaka Owen
    Real Estate Agent · Merritt Island, FL · Member since 2017 · 974 posts · 1k+ votes
    7y
    Originally posted by @Kate B.:

    We ended up using LimaOne Capital, they were very professional, closed on time (11 days) and all the numbers were accurate from initial conversation with them to closing. I would highly suggest using them. Message me for the contact who managed our file.

    I called LendingOne on July 3rd for a scenario, my name and number were taken however I never received a callback. The next day I spoke with a principle at Secured Investment Lending who was very responsive and I closed earlier this week. Both Lima One and Mofin Loans have been responsive so they (along with SIL) will likely be my go-to lenders moving forward. 

    6Reply
  • Karl Hadley
    Investor · New York City, NY · Member since 2017 · 65 posts · 32 votes
    7y

    @Tchaka Owen - so I’ve had mixed experiences with both Lending One & SIL, If the need came up again, i’d probably look for a new option... in addition to Lending one.

    Experience 1: Lending one, was preapproved for a loan on a new purchase & got all the way to scheduling the appraisal when a mysterious cap was put in place requiring a 60k per unit valuation (was never disclosed prior or even mentioned as a risk), they pulled out. The rep had been great to that point but left me high and dry.

    Experience 2: same property above, went to SIL and had a great experience, they were able to close quickly, and saved the deal.. servicing was relatively easy, I mailed in payments & it worked well even when one got lost in the mail. Most of my payments were early, and there were a few times this caused them to reconcile incorrectly and send late payment notices but the errors were quickly corrected. My only complaint with them was when the loan was repaid, the title company overpaid the interest due in settlement and 8 months later they still haven’t refunded or provided an explanation- the only response I get back is “that loan sounds familiar and is on my desk but the closing hasn’t been approved”. 8 months later I don’t buy it...

    Experience 3: Lending one - refi on the house for a long term rental. Pretty good, everyone throughout the process was responsive, even with getting the appraisal done around the thanksgiving holiday, I’m cautiously optimistic about using them again given what occurred in the first experience.

    5Reply
  • Tchaka Owen
    Real Estate Agent · Merritt Island, FL · Member since 2017 · 974 posts · 1k+ votes
    7y

    @Karl Hadley - thanks for the input! BTW, in regards to Experience 2, have you considered filing a complaint with the state board that governs the title company? That might light a fire under someone. 

    1Reply
  • Karl Hadley
    Investor · New York City, NY · Member since 2017 · 65 posts · 32 votes
    7y

    @Tchaka Owen - I hadn’t, would that be a complaint against the lender or the title company?

    0Reply
  • David Kandel
    Member since 2019 · 1 post · 2 votes
    7y

    Hello there, Just want to share my own experiences with lending one. We are about to close on our 3rd Rental Cash-out 30yr fixed Re-finance loan with them and we have had nothing but a positive experience dealing with them. From start to finish they are just a pleasure to deal with. Shout out to Corey @ lending one for being there at every step of the way making sure everything is running on track to closing.

    2Reply
  • Account Closed
    Member since 2019 · 30 posts · 6 votes
    6y

    Does anyone one what down payment is required for lending one requires on a 30yr rental property? Or how the configure their down payments. That’s about the only info I can’t find

    0Reply
  • Trevor Winder
    Flipper/Rehabber · Member since 2019 · 3 posts · 0 votes
    6y

    @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!

    0Reply
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