Type:
Real Estate Debt
Focus:
Debt

Overall:

Platform Provided Due Diligence:

Platform Fees:

Quality of Deals:

Website - LendingHome.com

Fees - 10% of the coupon rate

Phone - 310.907.7129

LendingHome funds mortgages for real estate professionals and makes them available to you as fractional notes, meaning you can buy a portion of the mortgage. You can either choose individual notes based on risk and return levels or let AutoInvest do the work for you by selecting a conservative, aggressive, or all-notes strategy. Put as little as $5,000 into each investment.


Borrowers will repay the loans you're invested in on a monthly basis. You own a portion each loan you're invested in and will receive a share of each payment. Log into your investor dashboard at any point to see how your investments are performing and summarized statistics for your portfolio.


We perform a comprehensive assessment of many parts of the loan, including the borrower’s credit, the asset valuation, and additional considerations specific to the opportunity being assessed. This diligence helps us offer you high quality investments so you won’t have to worry about evaluating each detail of the loan. If you do want to learn more about the mortgages in your portfolio, you can see information about the borrower, property, and loan terms through the investor portal.

Due Diligence & Discussions

Share your experience. Rate and comment!

James Mc Ree

Mar 21, 2018

I exited my last LH deal.  Their yields have plunged and they've raised their prices.  The same issues I commented on previously regarding no opportunity to do meaningful due diligence and non-existent communications persist.  Not recommended until they change.

Rates are usually in the 6-8% range now.

Suhail Mohammed

Jul 07, 2017

I have done a whole lot of deals on lending home, about 40+ and around 10 have paid off early. It has been a very good experience so far except for the recent fee spike. I like their volume and loan variety. So far, no issues.

Jack Reidy

May 03, 2017

Twelve deals on the site with 6 closed. Three of these deals are in foreclosure so I'm awaiting how these will be resolved before I invest further. I agree with previous reviewers that there is plenty of inventory on LH.

Most of these investments are bridge loans that last less than 12 months. This may or may not hurt some folks from a tax perspective.

 

Bill Scott

Feb 04, 2017

I have been on LendingHome since about the time they started taking accredited investors (early 2015). I have had nothing but a stellar experience. I have about $55k in the platform and about 11 current loans. I have auto invest and was mostly focused on whole platform (some early loans I hand picked). I have been averaging 10.47%. I only had one loan go late and that loan got back on track within about 40 days or so. 

I decided to invest on their platform (it was my first CFRE) based on a recommendation from someone who works for me. We had acquired his startup a couple years back and one of his VCs is also a VC for LH. I did a bit of checking on that and after understanding their approach around using data science to provide a risk profile, I was actually good with it. Why? Because I am a VP at one of the largest payment companies in the world and I am intimitately familar with what is possible from good Risk Science. I saw also they brought in some top talent in this regard and that led me to have more confidence. I also sent them a bunch of user experience feedback (part of my background is leading experience engineering at Netflix) and that led to me spending time discussing the platform with their head of product.

All that to say it does exactly what it advertised. My returns are what I thought they would be. And I don't expect there to be zero late or zero defaults. The key is there is a recourse for them to recover. I am comfortable with that risk to get higher returns.

I like having a dozen or so of these loans and my risk spread about.

Negatives.

Cash drag. Increments of $5k means if you aren't careful you can have money sitting in their balance doing nothing. $50k spinning off $400 or $500/mo will take 10-12 months or more to get reinvested. I can't find a way to auto deposit (like you can with PatchOfLand).

I would probably change my rating on Quality of Deals. In one sense I don't even care that much as I don't find myself looking at the deals. They are "commodity" for me as I trust the platform and approach and the individual deals are not what I look at, but instead auto-invest is basically a dynamic fund of bridge loans

Only residential could be a negative. But I use PatchOfLand for other diversification (as well as YieldStreet -- another review later) for my Debt investments.

Tax implication. But this is the same for all Debt CFRE opportunities. I balance this with equity investments.

From my research here is a recap:

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- Requires minimum of $50K on the platform

- Provide bridge loans (hard money) for rehabbers/flippers

- Individual loan investments can be as low as $5K each

- They originate their own loans and do all the risk underwriting (contrast with PeerStreet that brokers with hard money lenders nation wide which has both positives and negatives)

- Interest seems aligned with investors.

- They assign a grade for lenders and allow you to select individual loans to invest in or you can choose a target return and turn on autoinvest

- LH makes the money on the spread of what they charge the borrower and what they pay the investor (usually 1-2%)

- Does not automatically move your money to your bank account (and investment happens in $5k increments which means you can have cash drag)

- Bigger goal of the platform is to disrupt the mtg industry. They also partner with real estate brokers and mortgage brokers

- Deal flow is really not prominent. Even the way they display the opportunities you just don’t find the information that helpful (these are fixer uppers) although you can look for ARV (after repair value) and the LTV (loan to value) to determine suitability.

- Have originated over $1B in loans

- You aren’t directly secured, but LH holds first lien and ensures they are careful with LTV and ARV. 

- Only one default and it was recovered. Loss rates are extremely low. This follows my experience (about 9 months).

Bill Scott

Feb 04, 2017

Also, I concur with @james. Both of his points are spot on

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Lendinghome Lendinghome
Rated 2.8/5 based on 11 customer reviews

Website - LendingHome.com

Fees - 10% of the coupon rate

Phone - 310.907.7129

LendingHome funds mortgages for real estate professionals and makes them available to you as fractional notes, meaning you can buy a portion of the mortgage. You can either choose individual notes based on risk and return levels or let AutoInvest do the work for you by selecting a conservative, aggressive, or all-notes strategy. Put as little as $5,000 into each investment.


Borrowers will repay the loans you're invested in on a monthly basis. You own a portion each loan you're invested in and will receive a share of each payment. Log into your investor dashboard at any point to see how your investments are performing and summarized statistics for your portfolio.


We perform a comprehensive assessment of many parts of the loan, including the borrower’s credit, the asset valuation, and additional considerations specific to the opportunity being assessed. This diligence helps us offer you high quality investments so you won’t have to worry about evaluating each detail of the loan. If you do want to learn more about the mortgages in your portfolio, you can see information about the borrower, property, and loan terms through the investor portal.