When it comes to real estate investing, securing the right type of financing can make or break a deal, especially in the fast-paced markets of short-term rentals and fix-and-flip projects. For investors who own multiple rental properties or manage temporary rental spaces on platforms, traditional financing options may not always be the best fit. This is where private lenders like Easy Street Capital come into play. In this review, we’ll dive into what Easy Street Capital offers, how it compares to other lending options, and whether it’s the right choice for your investment needs.
What is Easy Street Capital?
Easy Street Capital is a private real estate lender headquartered in Texas, offering services tailored to real estate investors, including those who focus on rental properties, fix-and-flip projects, and short-term vacation rentals like those listed on Airbnb and VRBO. The company is known for its flexible loan terms, straightforward lending process, and tailored financial solutions aimed at helping real estate investors succeed. It has built a solid reputation by addressing the financing needs of investors who may struggle to secure traditional loans.
What services does Easy Street Capital offer?
Easy Street Capital offers a range of services aimed at real estate investors. These services help property owners finance their acquisitions and renovations and even refinance their existing properties.
Key services include:
Fix-and-flip loans:
Designed for real estate investors looking to buy, renovate, and sell properties within a short time frame.
| Loan amounts | $100,000 – $5,000,000 |
| Interest rates | 8% – 12% |
| Repayment terms | 6 – 18 months |
| Loan-to-value (LTV) | Up to 85% of the property’s value |
| Closing time | 7 – 14 days |
| Fees | 2 – 4 points (percentage of the loan amount, paid upfront) |
Example:
For a $300,000 property, an investor might receive up to $255,000 (85% LTV) at an 8% interest rate, with a repayment period of 12 months. They would also need to pay around 2 points in fees, equating to $6,000 upfront.
Rental loans:
These loans are tailored for investors seeking to acquire or refinance rental properties, with longer terms than fix-and-flip loans.
| Loan amounts | $100,000 – $5,000,000 |
| Interest rates | 5.5% – 9% |
| Repayment terms | 5, 10, 15, 20, or 30 years |
| Loan-to-value (LTV) | Up to 80% of the property’s value |
| Closing time | 15 – 30 days |
| Fees | 1 – 3 points |
Example:
For a rental property valued at $400,000, an investor could receive a loan of up to $320,000 (80% LTV) at a 6% interest rate with a 20-year term. They would pay 1.5 points in fees, which equals $4,800 upfront.
Bridge loans:
Short-term financing helps investors bridge the gap between buying a property and securing more permanent financing.
| Loan amounts | $250,000 – $7,500,000 |
| Interest rates | 7% – 11% |
| Repayment terms | 6 – 24 months |
| Loan-to-value (LTV) | Up to 80% of the property’s value |
| Closing time | 5 – 10 days |
| Fees | 2 – 3 points |
Example:
For a $1,000,000 property, an investor could get up to $800,000 (80% LTV) at a 9% interest rate with a 12-month repayment term. They would pay 2.5 points in fees, equating to $20,000 upfront.
New construction loans:
Financing for ground-up construction projects, making it ideal for those developing new rental or commercial properties.
| Loan amounts | $500,000 – $10,000,000 |
| Interest rates | 8% – 13% |
| Repayment terms | 12 – 36 months (until the construction is completed) |
| Loan-to-cost (LTC) | Up to 90% of the project cost |
| Closing time | 10 – 21 days |
| Fees | 2 – 5 points |
Example:
For a construction project costing $2,000,000, an investor might secure a loan for up to $1,800,000 (90% LTC) at an 11% interest rate, with a repayment period of 24 months. They would pay 3 points in fees, equating to $54,000 upfront.
Easy Street Capital loan types:
This chart provides a side-by-side comparison of the key loan types offered by Easy Street Capital, highlighting important factors such as loan amounts, interest rates, repayment terms, loan-to-value (LTV) or loan-to-cost (LTC) ratios, closing times, and fees. Whether you’re looking for quick financing for a fix-and-flip project, a rental property, or a new construction, this comparison will help you identify which loan best fits your investment strategy.
Easy Street Capital reviews: What clients are saying
We looked at numerous reviews related to Easy Street Capital’s performance and reputationMost clients appreciate the company’s responsiveness, competitive rates, and fast processing times. Investors, especially those working with platforms like Airbnb and VRBO, praise the company’s understanding of the short-term rental market and its ability to provide tailored financial solutions.
However, some reviews mention that their rates may be slightly higher compared to traditional lenders, which is common in private lending. A key takeaway from the reviews is that Easy Street Capital is particularly suited to experienced investors who need quick access to capital for time-sensitive deals.
Ellie Verdura from Cornerstone Homebuyers says: “Non-traditional lenders may offer faster approvals and greater flexibility but typically charge higher interest rates. Therefore, aligning the loan with the project timeline and anticipated cash flow can be crucial to avoid cost overruns.”
How Easy Street Capital compares to competitors:
- Loan approval times: Easy Street Capital is known for its fast processing times, with approvals often happening in as little as 5-10 days for bridge loans, which is competitive compared to Lima One Capital and LendingHome. Many clients choose Easy Street for its speed, particularly when time-sensitive deals are on the table.
- Interest rates: While Easy Street Capital offers competitive rates for private lending, some investors report slightly higher interest rates compared to other lenders. Lima One Capital and LendingHome may offer lower rates in certain cases, but the tradeoff may come in the form of longer approval times or stricter requirements.
- Flexibility: One of Easy Street Capital’s advantages is its flexibility with loan terms and its deep understanding of the real estate market, particularly short-term rentals. For investors who focus on Airbnb or VRBO properties, this can be a significant benefit. Competitors may not always offer the same level of flexibility or market-specific knowledge.
What is Easy Street Capital’s investment approach?
Easy Street Capital’s investment strategy centers around addressing the unique needs of real estate investors, particularly those operating in fast-paced markets. The company’s ability to process loans quickly is one of its standout features, providing investors with access to capital when timing is of the essence. This speed of processing can mean the difference between securing a profitable deal or missing out, especially in competitive markets like short-term rental properties or rapidly appreciating neighborhoods.
Another important aspect of Easy Street Capital’s approach is its emphasis on flexibility. Unlike traditional lenders, which often have rigid lending criteria and strict requirements, Easy Street Capital tailors its loan terms to fit the specific needs of each investor. Whether it’s adjusting repayment schedules or accommodating unique investment scenarios, the company’s focus on customization allows investors to align their financing with their broader investment strategies. This adaptability is particularly beneficial for seasoned investors who may need to juggle multiple properties or projects simultaneously.
In addition to speed and flexibility, Easy Street Capital’s understanding of the real estate market sets it apart. The company has a deep knowledge of niche markets, such as short-term rentals on platforms like Airbnb and VRBO, and it structures its loan products to cater to these specialized sectors. This market expertise helps investors understand and navigate challenges specific to these types of properties, including variable income streams, seasonal demand, and platform-specific regulations.
Pros and cons of Easy Street Capital
Like any financial service, Easy Street Capital has its strengths and potential drawbacks. Understanding the pros and cons can help real estate investors determine whether this private lender is the right fit for their specific investment goals. In this section, we’ll break down the advantages, such as fast loan processing and flexible terms, as well as the disadvantages, including higher interest rates compared to traditional lenders.
| Advantages of choosing Easy Street Capital | Disadvantages and risks to consider |
|---|---|
| Speed of processing: The company is known for its ability to process loans quickly, which is crucial for investors in time-sensitive markets. | Higher interest rates: Compared to traditional bank loans, the interest rates for private lending options like those offered by Easy Street Capital can be higher. |
| Tailored solutions: Easy Street Capital offers customized loan products, making it easier for real estate investors to find financing that fits their specific needs. | Shorter loan terms: While this is often a benefit for investors looking for short-term financing, those seeking long-term financing may find better options elsewhere. |
| Focus on real estate investors: The company specializes in understanding the real estate market, particularly for short-term rentals and fix-and-flip projects. | More limited availability: Unlike traditional lenders, Easy Street Capital may not be available in all states or regions, limiting access for some investors. |
| Competitive rates: While higher than traditional lenders, Easy Street Capital’s rates are competitive within the private lending space. |
Is Easy Street Capital right for you?
Easy Street Capital is an excellent choice for experienced real estate investors who need quick access to capital for short-term projects. If you’re flipping properties, refinancing rentals, or developing new properties, the company’s tailored solutions and fast processing times can provide the financial support you need. However, if you’re a first-time investor or seeking lower interest rates, you may want to consider traditional lending options.
FAQ
What type of loan is best for fix-and-flip projects?
Easy Street Capital offers specialized fix-and-flip loans designed for investors who plan to buy, renovate, and sell properties quickly. These loans have short-term structures and higher flexibility, making them ideal for investors working within short deadlines.
How does Easy Street Capital compare to traditional banks in terms of loan processing speed?
Due to its private lending model, Easy Street Capital typically processes loans faster than traditional banks. While traditional banks may take weeks or even months to approve and disburse loans, Easy Street Capital can often finalize deals within a few days.
Are there any risks associated with using private lenders like Easy Street Capital?
Yes, private lenders often offer higher interest rates and shorter loan terms than traditional banks. Investors should weigh the pros and cons, especially if looking for more affordable long-term financing options.
