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Asset Avenue -- Reviews? Anyone used them for financing?
I clicked on an add from asset avenue ( https://www.assetavenue.com/ ) and am curious if anyone has every used them, and what their experience has been? They appear to lend to non-owner occupied investments (rehab loans, rental property acquisition loans, etc.). Sound good, but there doesn't seem to be much 3rd party reviews out there.
Thanks in advance!
HI Albert, I'm one of the Co-Founders of AssetAvenue and am here if you ever have any questions! Just feel free to reach out or private message me.
Best,
David
@Albert, Did you find out more about this company? Wanted to circle back to see if you have any updates?
I'd like to know as well.
I took a chance and clicked through the first few links without providing any personal info other than credit score (excellent). They are offering 75% of property value, but the rate quoted is 6.74%. IF they will allow for rent estimates on previously un-rented properties, i.e., no rental history to count as income, and you have a FANTASTIC deal you can't qualify for on your own income it MIGHT be worthwhile, but hard to see it when today's 30-year fixed is 3.44%. There are the numbers I found, other BP members can probably weigh in on this better than I can.
@Hollis Cook You can get a owner-occupied mortgage for around the number you quoted, 3.44%, that is a conventional loan. You can also get a handful of loans through fannie/freddie that are for non-owner occupied mortgages, however borrowers often hit DTI restrictions and you pretty much cap out at 6 loans like this. After this you have to work with a bank on their commercial side (these are loans they often keep on their books, so they are pretty restrictive). Because of this tight lending environment many alternative lenders have jumped into the non-owner occupied lending space such as AssetAvenue.
Currently using them for a flip property now - I'll let you know how it goes
@Account Closed
Thanks for the input, I would be curious to know if the points/fees are comparable to other hard money lenders, and also if you experience any other hoops or difficulties with their processing and oversight.
Originally posted by @Albert W.:
@Account Closed
Thanks for the input, I would be curious to know if the points/fees are comparable to other hard money lenders, and also if you experience any other hoops or difficulties with their processing and oversight.
Definitely - so far the terms seem on-par with other lenders, but you never really know of any hidden fees until closing, and then at resale. So I'll let you know if anything crazy comes up after I close. Their communication thus far, though, has been above average (thus far) - which is one thing that I prioritize
Here in Memphis, it seems that the restrictions on value of property makes this platform a no-go. The value of the property has to be 100k in order to qualify for a 75k loan, which is their minimum. I have no problem with the 75% LTV restriction. That just makes sense. However, we can buy 3 houses for 90k here in Memphis...nearly rent ready. Maybe 100k all in rehabbed and tenants in place. That, coupled with the fact that the application fee is $499 for any loan less than 250k makes me think they're just banking application fees and not getting a whole lot done. It will cost you $499 per application for them to say "yes or no". Maybe that is not the case. I'd love to hear a success story with someone using them for a rental.
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#4 Ask About A Real Estate Company Contributor
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That is a smart observation @Sam Wilson on the application fee for simply getting to a yes or no. They make money whether they close a loan or not.
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@Account Closed Can you share on what happened after the submission? Did they end up funding the transaction and did were there any speedbumps along the way.
I had submitted the loan. paid the $249 app fee. 3 days after app fee was paid I was told they are not currently doing any funding but would refund my $249.00. My problem is that if they aren't doing an funding why keep the site open, why accept the application. I spoke to a rep numerous times just hours before submitting just to make sure I understood their process and not once did they mention they weren't currently funding. Getting my $249 back has been challenging as well. First I was told that it couldn't be put back on the card and would have to be mailed out. I provided address to mail. Then when I inquired about mailing a week and a half later I was told they couldn't mail out a check and it was put back on my card. Going on 20th day and still no refund. I did speak to a rep two days ago who told me I should just file a dispute with my credit card provider. Not sure if anyone ever funded a loan with them but this experience will not have me coming back.
Hey Alex Correa sorry for late reply. I actually ended up not using them in the last second. I went with another one which ended up not working due to low appraisal. So that house fell through. Then I found another house and ended up using a 3rd lender option (GreenLeaf Funding). The rehab has gone well so far and they have been great.
@Account Closed Thanks for the response. My experience was horrible. I am still waiting for a refund.
@Alex Correa Sorry to hear that. Let me know if you end up investing in a property there. When my flip is over (in Feb) I plan on doing more.
Alex Correa Early in this post there was a guy that said he was a cofounder of the company. Have you tried reaching out to him about your issues? Might help to get the ball rolling.
Sometimes new companies don't have all the systems in place for things as simple as updating the website or issuing returns. Sometimes, they neglect these things on purpose for nefarious reasons...
@David Manshoory Is that an issue you would be able to help with. I submitted a file with you guys and paid the processing/appraisal fee. A few days later I was informed that you guys are no longer doing any fundings and my file would be cancelled and refunded. Here we are 2 months later and no refund. I keep getting the runa around.
Originally posted by @Account Closed:
Hey Alex Correa sorry for late reply. I actually ended up not using them in the last second. I went with another one which ended up not working due to low appraisal. So that house fell through. Then I found another house and ended up using a 3rd lender option (GreenLeaf Funding). The rehab has gone well so far and they have been great.
Thanks for the update Obi!
Great thread. I was investigating them for a prospective flip. Will steer clear based on this thread.
Dana Chiordi from my understanding they lost their credit line and have not been able to secure another one. Why their sites are still up is beyond me.
@Alex Correa Thanks for the insight!