Lima One Capital Hard Money Lender...stay away!

[Myles Daniel]

I just wanted to copy and paste the review I left for Lima One Capital. Feel free to send my a note directly if you want more details. I'd just advise against using them as your lender. I've been in business for almost 8 months and completed 6 flips, so I know enough to recognize when I'm being shafted.  See below--

"I want to start by saying that I'm not writing this after being denied. I was approved and got funding for my investment home. However, I had a miserable experience with this company. I can't go into all the details in a google review, so I'll keep it simple. The lack of transparency, organization and internal communication is appalling! You can rest assure that you will have costly surprises along the way. Not to mention, the underwriter I was working with began raising his voice on the phone in a very unprofessional manner when I comforted him on issues that should have been resolved weeks prior. Clear communication and transparency are everything when working with a lender. This is something you won't get from Lima One. I would never recommend this company to investors. Do some research and find another lender because the grass is greener on the other side!"

[Chris Mason]

The business model of many hard money lenders is to get as many applications in the door as possible, and cherry pick the safest ones, and only fund those ones. This is especially true if the HML is on the better side of rate/fees, which by all reports Lima One is. The hard money lenders with the trash rates, trash terms, trash conditions... yeah, they'll fund with fewer questions asked.

I'm not going to say any of the above comments are wrong, or that the experiences of the folks posting are invalid, but if you want that super top notch terms/fees/rates hard money loan, then your DEAL needs to also be super top notch, even to a vanilla randomly selected appraiser following USPAP.

I've had many clients "graduate" from what I offer as a conventional lender into the fix-n-flip world that I do not really participate in, and the ones that got slamming deals back when they were working with me tend to have mostly (but not entirely) positive things to say about Lima One.

So I guess the lesson learned is that if you absolutely 100% have a slamming deal, take Lima One's offer of a single digit rate and less than 2 points, and go forward with the application. If you're still learning and this is your first flip, or if your ARV will not pass muster according to USPAP appraisal methodology, don't waste your time trying to work with Lima One, just take the 12% and 3 points from a bottom feeder HML. Loans are priced according to risk...