Here’s how a business-purpose lender can set you apart

Over the past few months, more and more landlords in the One Rental at a Time community have jumped into build-for-rent projects by finding lots to build new units or adding ADUs to their existing plots. 

For a long time, I didn’t have a go-to lender to recommend for these types of projects. But recently, I learned about LendingOne. LendingOne is a leading player in the single-family investment lending space and a great resource if you’re looking to expand or refine your strategies.

The world of real estate investing is always evolving, and with the right financing tools, investors can find new ways to scale and optimize their portfolios—so it’s important to make sure you are getting the best option out there. 

This week, I spoke with Josh Heintz, the company’s vice president of strategic partnerships about how LendingOne can help investors get a leg-up in their market. We discussed the lender’s offerings, including specialized loans and financing for new construction and ADUs, and more. 

Here are some key takeaways from Josh and I’s discussion about what LendingOne can do for landlords:

1. Investors need loan products that suit their situation at every stage 

For real estate investors, building a successful portfolio means not only finding the right properties but also securing financing that supports growth. The type of financing structure you need will change as your portfolio grows and you take on more diverse investment projects.  

The loan minimum is set at $60,000 and their financing covers properties with values up to $200 million. This gives investors the flexibility to scale up their operations as needed, whether you’re looking at a small fix-and-flip project or a build-for-rent community. 

LendingOne has a unique range of products, including debt service coverage ratio (DSCR) loans, loans for ADU and build-to-rent projects, fix-and-flip loans, and fix-to-rent loans.

Moreover, if you’re an investor looking to consolidate equity, the lender also provides the opportunity to combine multiple properties into one loan, making it easier to reinvest in new ventures. This flexibility helps investors transition from their first few properties to larger portfolios.

2. Business-purpose lenders can set investors apart

While a lot of commercial lenders have systems that are structured for buying owner-occupied home, LendingOne specializes in business-purpose lending, meaning they lend only on investment properties, like rental homes or fix-and-flip projects.

Additionally, they only close in the name of an entity (LLCs, corporations, or trusts), which gives you advantages like privacy protection and liability shielding. This way, your personal credit stays intact for other uses.

Whether you're looking to dive into short-term rentals, expand a portfolio, or tackle larger projects, LendingOne’s business-purpose loans are designed to work for investors, not against them.

3. LendingOne offers a fix-to-rent loan—a great solution for investors who want to rehab a property and hold it long-term. 

If you’re an investor who wants to fix an old property and then rent it out instead of selling it, the process of getting financing for that type of project can be complicated. With a typical lender, you will likely need to take out two different loans, which means two different appraisals and two different origination fees.

But with a fix-to-rent loan, this process can be a lot smoother. Here’s how it works:

• You find a property that needs renovations, and LendingOne provides loans for the purchase and the rehab costs.

• Instead of dealing with multiple lenders for rehab and long-term financing, LendingOne handles both—saving you time and money.

• Once the property is ready to rent, LendingOne seamlessly transitions the loan into a 30-year fixed mortgage.

• You get 50% off origination fees on the refinance and a discounted interest rate during the rehab period.

This approach minimizes costs and headaches, making it easier to build a rental portfolio efficiently.

If you’re interested in learning more about these lending opportunities or want to explore a specific project, Josh Heintz and his team are happy to help you. You can reach him directly at 561-486-7911 or via email at [email protected]. 

Be sure to also catch them at the ORAAT Celebration in Las Vegas, where they’ll be speaking and offering live quotes for interested investors.

ResiClub chart of the week:

This week, ResiClub’s Lance Lambert reported on a significant long-term shift in the U.S.housing market—the 20-something homebuyer is disappearing. He analyzed how the median age of first-time homebuyers in the country has changed over the past few decades:

28 years old → The median age of first-time U.S. homebuyers in 1991.

38 years old → The median age of first-time U.S. homebuyers in 2024.

Lance says some of that increase is driven in part by how strained housing affordability has gotten over the past three years, and some of that increase is driven by secular changes, which are happening across the developed world. Younger generations are delaying life events compared to previous generations, including attending school longer, marrying later, buying homes later, and having children later

Tomorrow is our ORAAT Celebration in Las Vegas, here’s how you can attend virtually

Tomorrow fans, millionaires, and real estate investors will gather for an exclusive event to network, and dive even deeper into the world of real estate investing. If you couldn’t attend in-person this year, you can still be a part of the celebration!

This exclusive opportunity will be capped at 100 people and run for about two hours.

Note: Virtual tickets are $99. Virtually attendees will have access to the full replay of the whole event just like the in-person attendees.

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