WARNING for LA Investors: My Bad Experience with MoFin Lending

[Hanna Zhang]

I’m a fix-and-flip investor based in Los Angeles, CA, and I want to share a disappointing and frustrating experience I had with MoFin Lending, which I hope will help others avoid similar situations.

A few months ago, I was contacted by the founder of MoFin Lending via email. He claimed his company could offer me a better deal than my usual lender. I’ve worked with another private lender for years with no issues,Out of curiosity, I looked them up and saw that their Google reviews were all 5-star — so I decided to give them a shot.

The founder offered me an appealing term: 10% down / 90% LTV, with low points — much better than the 20/80 terms I usually get. I was impressed and decided to move forward with a new property I was purchasing.

Everything went smoothly until 3 days before closing — that's when MoFin told me they could no longer honor the 10/90 structure. They claimed their internal valuation came in $10K lower, so they could only offer 80% LTV.

I was shocked. No other lender I’ve worked with has ever pulled this kind of last-minute change. When I raised my concerns, the founder accused me of "playing games." I wanted to ask — who's really playing games here?

I refused to accept the 80% offer because I felt deceived. I lost $300 in application fees, but thankfully my previous lender was able to close the deal within 2 days and save the transaction.

But it didn’t stop there. I left a negative review on Google to share my experience — and instead of a professional response, MoFin publicly replied with blame. MoFin even rated me as a “difficult client” — seriously? I paid them, not the other way around. I later updated my Google review to make it clear: I’m not here for arguments — your explanation doesn’t change the facts. MoFin clearly couldn’t accept the criticism and retaliated by publicly disclosing my personal information— all because I left a bad review. And from start to finish, not a single word of apology. Their customer service was disrespectful throughout the process.

To be fair, this company is based in New York, and maybe their standards or processes differ from those on the West Coast. But I’ve worked with Easy Street Capital (based in Texas), and never had this kind of issue.

In short: if you're an LA-based investor and receive an unsolicited offer from MoFin Lending promising better terms — proceed with extreme caution. What looks good on paper can fall apart when it matters most.

 Just hoping to save someone else from wasted time, money, and stress.

PS: And if the founder of MoFin sees this post — no explanation is necessary. I’m simply stating the facts. Besides, If you disclose my personal information on this forum in retaliation for my negative review, I will file a complaint with the appropriate financial regulatory authorities.

[George Despotopoulos]

Hanna, your bad experience is a bit of a false narrative. We didn't change terms on you. You were buying a property for $935k, putting $50k into it, and expecting an ARV of $1.95mm. The appraisal as-is value came in at $915k and the ARV $980k. This on paper was a very bad/unprofitable deal and I still tried to find you a solution but you refused to hear me out. I didn't change terms, I first said to challenge the appraisal but you wanted no part in it. And ultimately the property sold for $1.1mm vs your $1.95mm estimate and the appraiser's $980k (appraiser was closer than you were on that re-sale price).

I'm the co-founder/owner, normally don't get involved on new submissions but because your deal was around the holidays, and we had people out, I personally got involved, gave you competitive terms and oversaw your loan. I've funded over 2,000 transactions in 10 years and have done $600,000,000 in debt. You are literally the first negative review, which is impressive.

Things didn't go smoothly until 3 days before...from the beginning it was rocky, but we didn't let that impact you. You actually told us you've done way more deals and exited more projects then you actually have (I have the email, 4 flips and 4 rehab-to-hold/rent projects was represented). Yet, because I was involved and am able to make this discretionary call, we kept the same terms/rates/fees. 

Then, when the appraisal came in, you said the ARV would be $2.1mm, the appraiser came back and projected it to be $980k....At that stage, NOTHING changed, I had called you and explained we can challenge the appraiser's determination of ARV, you just need to provide 2-3 comps to back up the $2.1mm. At that stage you started, seemingly, crying and saying you don't trust me....Then, I said OK so forget the challenge, let's just lend against the as-is value/purchase price and disregard the renovation portion of the loan since you said you'd fund that with cash and don't need reno funds...

I'd love to open it to the group who chimed in here, how is this MoFin's fault? Borrower says ARV is $1.95mm...appraiser says $980k....we don't just take the appraiser's word, because maybe the appraiser's off, so instead, we ask the poster here, "can you send us the comps for the $1.95mm value?" And this individual refuses...All we asked were for comps to challenge. And said if it's unsuccessful, because we can't exceed 75% ARV, it would lower the initial funding amount we're able to lend. Regardless, spoiler alert, the property sold for $1.1mm.

To add, I emailed and told the original poster, I would personally refund $300, the cost for background/credit/flood cert, out of my own pocket as a sign of good faith and that I was very sorry it didn't work out. 

I'm not looking to argue, I'm just stating facts. I have all the emails to back this up.