Hey BP Family –
This is my long overdue review on Host Financial. Before I get into the details below, I will summarize by saying that my deal ultimately DID close, but with various frustrating moments along the way.
The process started off great as initially I utilized HF's Rental Estimator to look into by subject property. Upon doing research on the area, fact checking potential Revenue Potential etc., I decided to move forward with organizing a call to discuss the process. Bridget Brick would then become my primary contact throughout the process. This was an asset-based loan that would be placed into my LLC (I believe that all STR loan with HF must be placed in a business name prior to executing the loan).
Prior to the start of the process, I informed the loan officer that the contract was written with a 35 close and specifically asked if they would be in a position to meet this time demand, I was told that 35 days wouldn’t be an issue thus I proceeded. The rate in which I received was a bit higher than similar products (at that time 6.2% (great credit) 30/yr fixed with 20% Down Payment)
Throughout the process, it was extremely difficult to speak with my Loan Office over the phone. She would hardly ever answer the phone but would text and/or email at a later time. For me this was difficult when I had certain questions and/or the need for urgency. The handful of calls that were conducted, were typically scheduled. The communication between HF and their Capital Partners left much to be desired. In addition, my Title Company had a very rough time getting in contact with both parties to obtain information needed to close the loan. The appraisal was ordered last minute and was one of many delays which forced me to request an extension as the lenders partner dropped the ball.
Communication between the Lender and HF reps was not very good, or at least to the level that I was used to in similar deals. Bridgett was very nice, but the lack of availability was an issue for me. Throughout the documentation process, I found myself duplicating efforts by sending the same information repeatedly as someone couldn’t find a document etc.
Ultimately, the deal was closed more than a week after the closing date but closed nevertheless! Funding for the loan did not actually take place on signing day as the Lender needed additional time to review the signed docs (this was frustrating to the seller) but funds were wired the next day.
Fees:
- Upfront (pre-paid fee) $3k – This was the 1st
time I ever paid a fee up front (other than an inspection)
- 2% lender Fee – Very Expensive but I suppose is standard for this type of loan product
- Loan would be serviced/funded originally by Stronghill Capital
- Sold within 30 days to new provider
- Early pay-off penalty (expires after year 5)
Feel free to message or ask any additional questions that can help you in your investing journey.
Thanks!
