Recent Experience with Lima One Capital

[Mikael Winkler]

Hello all,

I'm curious if anyone has or is currently working with Lima One Capital? In perusing some other forum posts, experiences seem to be mixed. Though the negatives seem to be centered on spotty communication from them, not necessarily shady business practices with any of their products.

What have your experiences been? Good/bad? If bad, why? If good, what have you enjoyed, and is there still room for them to improve? 

For what it's worth, the rep I've been emailing with in my initial inquiry phase with them has been great. He's answered all my questions and been proactive in providing additional info to me. 

Any information is much appreciated. Thank you all!

[Kevin Polite]

Lima One has both good and bad. They do have fairly decent rates and points for experienced investors.Even rental rates are decent if you're over the 10 for loans in your name and need/want to put in your LLC. A couple of things to be mindful of:

1. Closing with them is a minimum of 3 hours. No joke. See why below.

2. Use a closing attorney that has worked with them before. Not the guy/gal that does your retail closings. They scrutinize to make sure every i dotted and t crossed. Their closing requirements for the attorney are like none I’ve seen. Some attorneys won’t work with them. I almost lost a seller because he wouldn’t leave the table until he, understandably, got  his money, 4 hours later with lunch in between. 

3. On rental mortgages they now keep in house instead of selling the mortgage and it’s a mess. You don’t get a monthly statement...unless you request and they send some weird “statement of account.” Note due on the 10th of the month, late on the 11th. 

4. They don't send a 1098 on rentals at the end of the year if you are a multiparty LLC. We have just 2 members and they told me just look on your statement of accounts.

5. 5-year prepayment penalty on all rental loans. This isn’t discussed unless you ask so make sure it’s at least a medium term hold. 

6. Sales Staff is generally nice, but they were growing fast and seems like a lot of turnover with inexperienced  staff. Service staff depends on who you get, but if you have a question on, say your escrow, good luck. Call, don’t email or you won’t get an answer.

7. Expect a low ball appraisal. It’s there way of protecting themselves. Just part of the game. 

8. Make sure you have enough cash to start you're flip as, with most HML, you start work then get draw. They give you 5 draws at $200 each.

@Mikael Winkler how’d it go?