Real estate investing is a competitive arena and requires you to be ahead of the pack. You see a lucrative deal and immediately feel the pressure to act fast—that’s where private lenders like LendingOne come in.
LendingOne is a dedicated financier for real estate investors and business professionals. The group adopts a professional approach to funding investment deals, allowing borrowers to enjoy faster processing and more tailored services when compared to traditional lenders like banks.
This guide will help you understand the range of products available with LendingOne, along with the eligibility parameters, processing timelines, and other service factors. We will also discuss top tips for choosing the best lender for your deal.
LendingOne—Type of Loans and Product Options
LendingOne is a specialized nonbank private lender offering investment mortgages. Most private lenders are financiers for hard money real estate loans. Hard money loans are asset-based loans, i.e., loans offered according to the value of the collateral. You can get them even if your profile as a borrower isn’t traditionally attractive (for example, you have an impaired credit score or past mortgage defaults).
LendingOne calls its products a mix between regular bank loans and hard money loans. The group may follow certain lending guidelines and work with only specific borrower profiles for some of their products.
Currently, the company offers the following products:
Rental Property Loans
LendingOne offers three different types of rental property loans to suit different investor profiles. You can go for the following programs with the group:
- RentalOne loans—RentalOne loans are suitable for investors looking to hold the property long term. LendingOne offers 30-year fixed-rate and amortized loans and 5/1 hybrid adjustable-rate mortgages for purchase, refinance, and cash-out refinance scenarios
- Portfolio rental loans—Portfolio loans are suitable for investors who want to close the deal on five or more rental properties at a time. The lender offers recourse and non-recourse options depending on your risk appetite
- Landlord loans—LendingOne has specially designed landlord loans for people who do rental investing while holding a full-time W-2 job. These loans are available at competitive pricing with no tax return verification. You have to create an LLC to qualify for landlord loans
Rental property loans are available on single-family residences, 2–4 unit properties, planned development units, townhomes, and condos (with certain restrictions).
Property Rehab Loans
LendingOne has property rehab or house-flip loans for both resale and hold strategies. The two wings of the product are explained in the following table:
|Fix-and-flip loan||LendingOne funds fix-to-flip loans for up to 90% of the purchase and repair cost. The borrower can request a maximum tenure of 24 months to complete the project, sell the property, and repay the loan|
|Fix-to-rent loan||Fix-to-rent loans support investors with a BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy. The borrower gets up to 24 months to repair and renovate the property. Once the home is ready, they’re automatically refinanced with LendingOne’s 30-year rental loan|
The group’s loan size for property flips is between $75,000 and $10,000,000.
Multi-Family Bridge Loans
Multi-family bridge loans are targeted to help real estate sponsors get a steady stream of financing for their apartment holdings and value-added construction projects. They are generally used for refinancing loans that don’t meet seasoning requirements or simply for recapitalizing (i.e., restructuring the debt and equity structure of the investment company).
LendingOne specifies the following parameters for their multi-family bridge loans:
|Parameter||LendingOne Multi-Family Bridge|
|Loan size||$1–15 million|
|LTV||Up to 70% of the stabilized value|
|Interest rate||Starting from 5.99%|
|Tenant occupancy||At least 70%|
|Eligible property||Any apartment building (minimum five units)|
|Amortization||No (interest-only payments)|
LendingOne doesn’t specify the points applicable to the program, but the final rate is usually determined by the loan and sponsorship arrangements.
Source: Brandon Griggs
New Construction Loans
LendingOne’s ground-up construction loans can be used for single-family homes (detached), multi-family homes, condos, townhomes, and multi-asset properties. The lender may also allow construction projects for spec homes.
New construction loans are available for $500,000–$5,000,000 projects, and the terms are negotiable depending on the nature of the work. These loans have interest-only payments, but if that is difficult for you, the lender can allocate built-in reserves that pay off the interest for the first few months until cash inflow is generated. Keep in mind that setting up an interest reserve is an expensive choice because you’re paying double interest costs on that portion of the loan.
LendingOne—How To Apply
LendingOne has an online app you can use to create a client account and apply for a loan. You have to provide details about your business, rental or rehab experience, credit score, and current portfolio. LendingOne desires a minimum credit score of 680 for all applicants. While lending is more flexible than through traditional channels, you still have to fulfill requirements as a credible borrower and arrange the necessary paperwork.
Based on your application particulars, you can get estimated rate quotes online. In most cases, the pre-approval is usually granted within a few days, while the loan itself takes 10–14 days to close.
LendingOne Service Reviews
LendingOne has a rating of 3.8 stars on Google, which can be deemed as average in the immediate market. Here are some of the best aspects of the lender (based on customer reviews):
- Less paperwork required during the underwriting process (compared to banks)
- Option to get 30-year rental loans (most private lenders offer short-term hard money loans)
- Transparent communication
- Fast funding
As for reviews from dissatisfied customers, we noticed the following issues presented in their reviews:
- No servicing to new investors (even with high credit scores)
- Irregular communication and customer service
- Prolonged underwriting time
Most of the dissatisfaction comes from the eligibility barriers at LendingOne. Applicants expect hard money loan-like financing and end up getting frustrated when they go through the strict underwriting process. That being said, the group is a promising financier in case of the limited borrower profiles it handles.
If LendingOne doesn’t work for you, there are many private hard money financiers with more relaxed entry requirements and better terms. Go for lenders rated 4.5 stars or more, as that denotes high customer satisfaction.
Hard Money Loan Solutions is a 5-star rated private financier catering to real estate investors, landlords, and business professionals, regardless of experience. The group also works with homeowners looking for owner-occupied property loans or bridge loans, making it one of the most versatile hard money lenders in the market!
Source: Austin Distel
Hard Money Loan Solutions—A One-Stop Lender for Real Estate
Banks and even private lenders often have little insight into what types of financing an investor needs. At Hard Money Loan Solutions (HMLS), you get a team of veteran real estate investors supporting you with tailor-made, cost-efficient mortgages. HMLS honors time sensitivity and convenience, servicing real estate loans with:
- No huge entry barriers—HMLS does pure asset-based lending, allowing applicants from any background to qualify. The group’s loans are easily available to:
- U.S. citizens and foreign nationals
- Bad credit individuals
- First-time investors
- Past defaulters
- Relaxed underwriting process—HMLS underwrites loans based on the value of the property, profitability of the project, and the applicant’s potential repayment strategy, so there’s no other catch. As long as you can meet the LTV or have enough equity in the collateral, you get approved
- Minimal paperwork—You only submit paperwork relevant to your situation, such as mortgage documents or construction plans. HMLS never asks for:
- Bank statements
- Tax returns
- Asset schedules
- Competitive cost components—HMLS offers competitive points and hard money rates (9.99%–12%) with interest-only payments perfect for investors. You can save around $8,000 with the group because the pricing is free from junk costs like:
- Processing fee
- Underwriting fee
- Upfront fee
- Rate-lock fee
- Draw fee
- Smooth closing—HMLS works to keep the processing stress-free, allowing most borrowers to access funding within 3–10 days with no procedural headache
Contact HMLS to have a one-on-one conversation with a loan specialist. The team is responsive and friendly, providing savvy financing solutions for almost every real estate scenario.
HMLS—Products and Lending Terms
HMLS offers practical products that cover property development, acquisition, and management. Here are some of the popular programs of the group:
- Rehab (fix-and-flip) loans
- Purchase loans
- New construction loans
- Renovation loans
- Commercial hard money loans
- Business acquisition loans
- Mezzanine finance loans
- Foreclosure and short sale management loans
- Rental property loans
- Refinance and cash-out refinance
- Land loans
Once you apply for an HMLS product, the team will analyze your case to create a true-fit solution. The aim is to make the lending terms fair and manageable. Your final package will be designed according to in-house parameters, summarized in the table below:
|Interest rate type||Fixed|
|Loan-to-value ratio (LTV)||Up to 70%|
|Eligible property||• Single-family homes|
• Multi-family homes
• Retail or commercial structures
• Special-use properties
|Origination fee||2 points or 2%|
|Closing time||3 days to 2 weeks|
|Prepayment penalty||No penalty after 6 months|
HMLS is headquartered in Delray Beach, Florida, but lends across the state and in areas where its lending structure works. Click here to check out some of the group’s funded properties.
Source: Google Reviews
How To Apply or Request Quotes at HMLS
HMLS has a streamlined application and pre-approval process consisting of the following steps:
- Go to the Get Approved Today page on the website
- Complete the fields—you typically have to provide info about your property and the requested sum
- Add a customized message if you want to
- Submit the application
The analysts at HMLS will quickly go through your application to determine if your deal can be funded. A lender calls the applicant directly to communicate the approval status and further details.
HMLS is reliable when it comes to strict financing commitment—once approved, the group promises to deliver the funds no matter what. As a client, you also enjoy:
- Complete transparency and top-notch lending ethics
- Free professional guidance on real estate financing
- Easy loan alterations
Besides HMLS, here are a couple of other lenders you can check out—access their reviews from the following table:
Featured image source: Breno Assis