Using alternate sources of Funding for deals

[Ryan Cameron]

I was just kicking around this idea since watching a video last night.

Using lending sites such as lendingclub to finance my next deal.

Pros:

-easy application process (takes about 2min online)

-turn around time (could have funds in your account within 2weeks)

Cons:

Higher interest rates

I am seriously considering trying this, even at a higher interest rate, I could easily re-fi the property in a year for a lower rate. And I could still be cash-flow positive even at the higher rate

Please share your thoughts on this method of financing

[Brie Schmidt]

I haven't used this for financing but when our rehab got away from us I took out 20k to pay for it (through Lightstream) I think I applied on a Thursday, got the conditions back from them Friday and sent in the docs they needed, Saturday we were approved and Wednesday we had the cash.

Overall the process was super easy. I will note they they still do a credit check and still require bank statements, paystubs, ect just like a loan would.

[Ryan Cameron]

@Brie Schmidt

Thanks for the info. I never heard of lightstream before now. I have no issues with credit checks, bank statements or other typical loan documents, it's just that recently banks have been making me jump thru hoops to obtain funding even with a credit score of 800+

[Brie Schmidt]

Ouch! we looked at lending club but I needed to fill out a form and my info would be sent to multiple people and I don't like that. Lightstream is through SunTrust and was very easy.

[Ryan Cameron]

I agree that the thought of sending my info to other people did not sit well with me either. I will have to check out Lightstream. Thanks again @Brianna S.

[Huy N.]

Hi Ryan,

have you had a chance to check out Lightstream? I heard good thing about them but never tried.

Thanks

Huy

[Dawn Anastasi]

Originally posted by @Brie Schmidt:

Ouch! we looked at lending club but I needed to fill out a form and my info would be sent to multiple people and I don't like that.

I believe you are thinking of "Lending Tree" not "Lending Club". Two very different businesses but similar names.

[Eddie T.]

@Brie Schmidt when you applied did you select home improvement or a different category? Also what apr did they charge you? Thanks

[Brie Schmidt]

@Dawn Anastasi

 - you might be right, it wasn't peer to peer lending

[Brie Schmidt]

Originally posted by @Eddie T.:

@Brie Schmidt when you applied did you select home improvement or a different category? Also what apr did they charge you? Thanks

 I ended up doing LightStream (Flagstar Bank) and did a home improvement loan for around 6%

[Bryan C.]

has anyone else ever used Lightstream?  Curious other experiences...seems like a good opportunity to take advantage of.  I would love to hear success stories, how much did u borrow/length of repayment period/interest rate....