Building Your Empire with Lending One - Josh Heintz

Retire on Rentals Podcast: Building Your Empire with LendingOne - Featuring Josh HeintzEpisode Overview:In this episode of Retire on Rentals, host Nicholas Cook welcomes Josh Heintz, Vice President at LendingOne, to discuss how real estate investors can leverage specialized lending products to grow their portfolios. Josh shares insights on why LendingOne stands out as an investor-friendly lender, the types of loan products they offer, and how they support investors at every stage of their journey. From first-time landlords to institutional investors, this episode is packed with actionable advice for optimizing real estate investments and achieving passive income goals.Key Topics Discussed:Introduction to Lending One (00:00 - 05:00)Josh Heintz introduces his role as VP at Lending One and his 1.5-year tenure with the company.Overview of Lending One’s mission to provide speed, ease, and investor-focused financing solutions.Why building a relationship with a lender early is crucial for real estate success.Why Choose LendingOne? (05:00 - 15:00)Differences between LendingOne, traditional banks, credit unions, and hard money lenders.LendingOne’s niche as a private lender offering flexibility for investors at all levels—mom-and-pop to institutional.Emphasis on speed (similar to hard money) with competitive rates closer to traditional banks.Business-purpose-only lending: Loans are made to entities (LLCs, trusts, etc.), not individuals.LendingOne’s Reach and Capital Strength (15:00 - 22:00)LendingOne operates in 47 states, excluding North Dakota, South Dakota, and Alaska, with a focus on primary, secondary, and tertiary markets.Challenges with lending in extremely rural areas due to limited data.Assurance of capital availability through large warehouse lines of credit from major financial institutions, unlike hard money lenders who may run out of funds.Underwriting and Investor Requirements (22:00 - 30:00)Asset-based lending: Focus on the property’s performance (e.g., Debt Service Coverage Ratio - DSCR) rather than W-2 income or tax returns.Minimum FICO score of 660 for personal guarantors, with rates influenced by credit profiles.No requirement for prior rental ownership for DSCR loans, but experience is needed for fix-and-flip or new construction loans.Loan Products Overview (30:00 - 45:00)DSCR Loans (Flagship Product):30-year fixed-rate loans for rental properties, with 5- and 7-year ARMs available.Minimum 20% down, based on the property’s cash flow (DSCR ≥ 1.0).Ideal for investors hitting debt-to-income (DTI) caps at traditional banks (typically after 3-4 properties).Competitive rates due to a proven track record in the capital markets.Fix-and-Flip Loans:12-24 month interest-only loans for purchasing and rehabbing properties.Up to 90% of purchase price and a percentage of rehab costs, with rehab funds held in escrow (interest-free until drawn).No prepayment penalties.Fix-and-Rent Loans:Streamlined product combining short-term fix-and-flip financing with conversion to a 30-year DSCR loan.Benefits include comped appraisals, 50% discounted origination fees, and reduced interest rates during the bridge period.New Construction Loans:Similar to fix-and-flip, supporting ground-up builds for flipping or renting.Suitable for infill lots or lot subdivisions, with experience requirements (prior construction or heavy rehab).Portfolio Loans:Full-recourse (30-year fixed) or non-recourse options for bundling multiple properties.Minimum 3 properties or $500,000 loan value, with up to 80% leverage (70% for non-recourse).Ideal for cash-out refinances or bulk purchases, with discounted rates for larger portfolios.Unique Offerings and Tools (45:00 - 50:00)LendingOne’s focus on investor education and partnership through dedicated loan advisors.Tools available on lendingone.com to estimate After Repair Value (ARV) or projected market rent for potential deals.Combination of servicing some loans in-house while selling most to capital market participants, ensuring consistent servicers for borrowers.Market Outlook for 2025 (50:00 - 55:00)Investor sentiment: Cautious optimism with expectations of stable or slightly declining interest rates (6.25-6.5% by year-end).Opportunities in distressed properties and markets with rising inventory, but challenges with longer days on market.Advice: Act now to gain a competitive edge before market sentiment shifts in Q3/Q4 2025.Multifamily and Future Products (55:00 - 60:00)LendingOne currently focuses on single-family, duplex, triplex, and quadplex properties (not 5+ unit multifamily).Potential for future products in the 5-9 unit space as the company evaluates market demand.Closing Thoughts and Advice (60:00 - 65:00)LendingOne’s commitment to being a long-term partner, not just a transactional lender.Importance of quick deal analysis to determine viability, enabled by LendingOne’s speed and data access.Josh’s personal drive to educate investors about private lending options to...