About our Rental Loans

What type of properties are eligible for LendSimpli Rental loans?

The following types of properties are eligible for our LendSimpli Rental loans:

    • Single family residence (SFR)
    • 2-4 unit properties
    • Townhouses

What type of documentation is required for LendSimpli Rental loans?

LendSimpli Rental loans will require the following documentation from borrowers applying for a loan:
  • Application
  • Photo ID (all members of the LLC, if applicable)
  • Bank Statement or, Money Market or, Brokerage Account to Show Six (6) Months of Property Expense Liquidity
  • Schedule of Real Estate Owned
  • Proof of Experience, if applicable (document receipt of rental income on a property owned and rented or, Property Management Questionnaire)
  • Credit Report (LendSimpli will run)
  • Entity Formation Docs (Filed Articles of Incorporation, signed and dated  Bylaws/Operating Agreement, Evidence of Good Standing)
  • Entity EIN/TIN
  • Current Lease (if applicable)
  • If part of an HOA Cert, CC&R and Master Insurance Policy
  • Insurance Bill (document listing insurance premium)

Other documents may be requested based on the individual circumstances and collateral.

Does the property have to be rented?

Generally, there needs to be a lease in place at the time of origination with at least 3 months remaining, unless the renter has been renting the unit for the prior 6 months.
If either of those requirements is true, we are able to move forward.
We will consider opportunities without a lease in place on a case by case basis.

Which locations can you lend in?

LendSimpli can lend in most states. We may not be able to lend if the property is in a rural area, which makes comparable property analysis a difficult task. We require three recent comparison properties within 3 miles.

What is Debt-Service-Coverage-Ratio (DSCR)?

Property Debt-Service-Coverage-Ratio (DSCR) is a measurement of the cash flow available to pay current debt obligations. It helps determine if the rental investment is generating enough income to afford its obligations. The eligibility requirement for rental loans is DSCR.

DSCR is calculated by the following formula:

DSCR = Net Operating Income (Rental Income) / Total Debt Service (Principal+Interest+Taxes+Insurance+HOA Dues)

Rental income is considered the lower of the actual rents and market rents.

How much cash out can I receive from a LendSimpli Rental loans?

There is no maximum cash out on the LendSimpli Rental loans program. The only maximum is the loan amount based on the 70% as-is LTV.

Is there a prepayment penalty?

Yes. There are prepayment penalties on the LendSimpli Rental loans program. The maximum prepayment penalty is 5 years with an annual step down from 5% to 1%. We can discuss your individual situation when underwriting the loan.

How much does LendSimpli Rental loans cost?

Each project is underwritten separately and most of or projects are funded between 6.5% – 9.0% with 2.5 – 4 points charged at closing. These rates are a function of local market conditions, the loan to value ratio, and the scope of the rehab. Once you submit a project, your underwriter will be able to give you a clearer indication of expected rates.

About our Bridge Loans

What type of properties are eligible for LendSimpli Bridge loans?

The following types of properties are eligible for our Bridge and Fix and Flip loans:

    • Single family residence (SFR)
    • 2-4 unit properties
    • Condominiums
    • Townhouses

What type of documentation is required for LendSimpli Bridge loans?

LendSimpli Bridge loans will require the following documentation from borrowers applying for a rental loan:
  • Application
  • Photo ID (all members of the LLC, if applicable)
  • Prior 3 Months Bank Statements
  • Schedule of Real Estate Owned
  • Proof of Experience – List of Past Projects (Prior 2 Years)
  • Credit Report (LendSimpli will run)
  • Entity Formation Docs (Filed Articles of Incorporation, signed and dated  Bylaws/Operating Agreement, Evidence of Good Standing)
  • Entity EIN/TIN
  • Purchase Agreement (include HOA Cert, CC&R and Master Insurance Policy if part of an HOA)
  • Itemized Rehab Budget & Schedule
  • Evidence of Insurance

Other documents may be requested based on the individual circumstances and collateral.

Does LendSimpli lend on construction or rehab?

Yes! LendSimpli can provide financing on the acquisition and
renovation of your property.

Which locations can you lend in?

LendSimpli can lend in most states. We may not be able to lend if the property is in a rural area, which makes comparable property analysis a difficult task. We require three recent comparison properties within 3 miles.

Is there a prepayment penalty?

No. There is no prepayment penalty on our short-term loans.

How much does LendSimpli Bridge loans cost?

Each project is underwritten separately and most of or projects are funded between 8.99 – 12% with 2.5 – 4.0 points charged at closing. These rates are a function of local market conditions, the loan to value ratio, and the scope of the rehab. Once you submit a project, your underwriter will be able to give you a clearer indication of expected rates.