Lendinghome Review: Real Estate Crowdfunding & Investing Sites
Owning a home is a dream that everyone has. We manage our finances to make way for the hefty mortgage to fit in. Even after all of this, it is not easy to find a home loan. The obstacles of getting a home loan are much tougher than they should be. Founder of CEO Matt Humphrey saw an opportunity in this segment and came up with LendingHome.
LendingHome is very different from real estate crowdfunding websites. On a typical real estate crowdfunding website, only investments in real estate through equity, debt or loans are available and the websites sole purpose is to serve investors who are looking to invest in real estate. On the other hand, LendingHome main objective is to provide bridge loans to the people looking to mortgage their property to renovation or rehab. LendingHome is used mainly by property investors who looking for a quick-flip for a residential property.
Homebuyers, property investors, and brokers can get easy investments for their property by following easy steps which allow them to choose the best loan for them. For home buyers, you start by answering a few question about the type of home you are looking for, then you need to upload documents like income verification, assets history etc to get your loan pre-approved, in step 3 you need to upload documents like homeowners insurance, title information and purchase contract to get you loan terms and in the final step you accept the best loan suitable to you, and the loan will be sanctioned to you. For property investors, the process is almost similar except you need to submit your project details to LendingHome with a processing fee of $199. For property brokers who are looking for a loan for their clients, the process is same except they need to provide the personal details for their clients instead of their own.
For investors who are looking to invest in real estate loans with LendingHome, you start by signing up for an account, where LendingHome will very your accredited investor status. You can then connect your bank account securely and transfer funds into your investor account via ACH. LendingHome funds mortgages for real estate professionals and make them available to you as fractional notes, meaning you invest in a fraction of the total mortgage amount. You can choose the investment yourself or let their Autoinvest find the most suitable investment for you. You can start with as little as $5000 into each investment. Borrowers will repay your loans you have invested in on a monthly basis, you will receive a portion of the payment which will be proportional to the investment you have made. Your loans will be fully paid within 12 months or less. If anything goes wrong LendingHome will take care of it. Since your investments are backed by a real estate a foreclosure can always sort things out.
LendingHome Investment Options and Special Features
LendingHome believes that complete transparency with borrowers and investors is very essential. On their platform, you can view all the documents related to an investment. You can view the background details of the property, you can view background details of the borrower etc. This allows you to perform your own due diligence before investing in any property. LendingHome does not charge any fee from the investors which a plus point in their in the system. LendingHome charges a small application fee of $199 from the borrowers which totally or partially refundable depending upon the steps that have been taken in the processing of the application. This application fee is charged for the process of loan underwriting, ordering appraisals, background check etc.
Autoinvest is a wonder tool from LendingHome for the investors. It can select individual loans and automatically reinvest any available funds into open notes that are matched by your preferences and selections. You can check the activity of auto-invest on the dashboard of Lending home. The dashboard is called investor dashboard where you can also find information about portfolio's performance, including the breakdown of loans by tier state, grade etc.
You invest in one investment for about 12 months or less, some loan terms are longer than that and may be extended to longer terms if the loan has any issues such as delinquency or default. After payments are collected and applicable service fees are deducted, the remaining principal amount is sent to the investors as a pro-rata base.
Lending Homes Past Investment Opportunities
Requirements to Sign up For Lending Homes
- Provide your basic details to create the account
- Provide details to support you being a accredited investor
- Link your bank account with Lending homes
- Complete your investor's profile and you are good to start investing with Lending Homes