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I have a property

 

Great, that’s part of the real estate investor’s challenge completed!

Real estate is as lucrative as it is difficult. If it was easy, it wouldn’t be lucrative. You have heard this before, but what does it mean? Well, you are here because you are looking for funding, for someone or some organization to see the same thing you see: profit.

What is next?

Reviewing You and Your Property

You will need to submit your property for review. Every lender will balance risk vs. reward. This is called risk management. To manage risk they will look at you and the asset. If you are a solo investor, the magnifying glass on you will be much larger, which is why investors join our network: they have us on their side when looking for funds. And lenders know that we know what we are doing, making you and your deal a lot less risky.

What will they analyze? Your experience mostly, but they will also look and listen to everything you do and say – after all, you can give someone the best asset in the world, if they do not know what they are doing they will lose it and squander opportunity, right? Again, our teams of experts, our experience, and our connections, all these take the magnifying glass off you and on to your asset.

Another crucial review will be how well you prepared the deal. Missing crucial information or numbers that do not add up are indicators that continuing the deal with you would present higher risks. You would be surprised how many good deals are rejected simply because the person submitting the deal didn’t have their ducks in a row. Our members benefit from professional reviews BEFORE they submit to third parties for funding.

Lenders typically look for the same things:

  • Is the contract properly executed? Without a contract you will not find lenders willing to review.
  • Are comps accurate and do they confirm ARV? This is one of the most essential steps, and the one most often lacking. Comps need to be of the same type of home (a rehab needs to be compared to a rehab), same age, same square footage, and within the same neighborhood – this means usually less than 1/2 mile.
  • Are you submitting “clean” bids from licensed and experienced contractors? This means that you didn’t influence the contractor to create a bid around a certain budget, it means the contractor can give references for similar types of rehabs and that he is bonded, insured and licensed.
  • Usually an appraisal is required, even though our Keystone Funding Network members only have to submit a BPO.
  • Even though we at KFN do not, many lenders require good credit, cash, employment and tax information, and will look at your history – specifically bankruptcy and arrests.

Do I Really Need All These Things?

Yes. The requirements for non-primary residential funding are different from primary residential loans, as you are asking the lender to take part of the risk on an investment. However, the more you can bring to the table, the less stringent lenders will be on the details. If you have cash and assets that you are willing to use as security for funding, you will find that lenders might overlook what otherwise could be seen as a risk.

Let me ask you this though: would you want lenders to be strict in their risk management, or would you want them to not care if you end up flopping on your flip seeing as you have assets and/or cash they can go after to recoup their funding?

The point is that “easy funding” doesn’t exist, just like “easy real estate” or “easy wealth” doesn’t exist.

How Will Keystone Funding Network Help Me?

Our network exists to help ease the path between you and flipping a deal. This includes:

  • Reduced the requirements needed to qualify for funding
  • Members have access to a vast network of lenders – both private and hard money
  • For top properties, KFN will direct fund and flip deals in partnership
  • Reviews of properties, especially useful for members who use third parties for funding
  • Essential tools, such as our profit calculator which accounts for costs often overlooked by investors
  • Top, up to date education and information. This is a free bonus for all members.
  • And lots more.

We do not make real estate easy because that is impossible with any investment. Keystone Funding Network makes real estate investing easier.

Contact us for more information on a membership, or start your funding application here.

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