Lending Circle LLC

[Travis Andres]

Anyone heard of or had any experience with a company called Lending Circle LLC?

I got this unsolicited email from them: “I'm a direct private lender now offering 100% LTV through private real estate loans also financing 100% of Purchase and 100% of rehab cost. Rate is 4% fix with 30yrs Amortization for Commercial, Residential, Multifamily, fix and flip 1-4 Units and Non-owner occupied. No minimum credit check and fast closing in 4 days. I would love to know if you currently have an investment deal that requires funding at the moment”

But one red flag for me was that it came from someone’s Gmail account. So I looked it up online, couldn’t find any reviews, but I found the website and then the second red flag came when I emailed their info@ email and it bounced back. 

Obviously not going to do any business with this company, just wondering if anyone has heard of them

[Jason Wray]

Travis,

When it sounds too good to be true it usually is BS! Mortgage rates are nowhere near 4% due to FED rates, treasuries, and MBS currently so unless this is an "Angel Investor" it's not possible to be that low. There is also "No minimum credit check? -Credit is a prime risk, and close in 4 days? It cannot be a true RESPA lender if they are closing in 4 days so maybe hard money or Non/QM.

You usually see asset lending have extremely low rates but that is for borrowers who have a substantial amount of money in an account. That type of lending is still not worth it to have your assets tied up and still pay interest, essentially using your own money.

You have to watch out for teaser rates or companies who still do not understand "Bait & Switch" advertising who could be a sitting duck for the CFPB to come in and fine them for trigger terms and non-compliant advertising.  Loan officers and companies are hurting for business so they are trying hard to push all marketing to get attetion.