keystone funding network
Investor · Olmsted Falls, OH · Member since 2015 · 50 posts · 7 votes
I have a good home inspection client who recently signed up with Keystone Funding Network. I would like to know if anyone has had any experience with them.
TIA
Scott
Before anybody gets involved with Keystone or any of the layered corporate structures that are very difficult to peel back, step back and change your approach. Your Due-D on the company will be frustrating at best; so dig into the people you are communicating and / or working with as I did. What I found is that most of the professional backgrounds are calls center, scripted, high pressure specialists that work assertively to extract fee’s memberships etc. In our case, when you challenged them, they simply talked faster, in circles, deflected from the topic and flat out refused to provide references or a meeting at that business hqtrs. When they didn’t like what you asked, requested, looked into or questioned - the canned response was this isnt for you. Use google, use LinkedIn, use Facebook. You are simply considering a relationship with people. And, it’s the people that will or will not make the difference. Know WHO you are considering laying with, it’s not a corporation. Ask yourself this; if you brought them two deals a month @ $10k or $40k of profit, why’s are they pressuring anybody for a $3k membership??!! Sounds pretty silly right!?!?!? I dared them to provide 3 references and I would fly to Utah to meet the awesome AT MY EXPENSE. Guess what, no deal....
Hi Scott,
Here is a link that might give you more clarity on the subject:
https://www.bbb.org/utah/business-reviews/no-licen...
I would recommend that you'll read the negative comments/reviews in order to understand the way they are operating.
Best of luck!
Arie D.
Hi, I believe that this is my first time posting on BP. I do have experience with Keystone Funding on the Fix and Flip side. I have no idea what the link provided to the BBB has to do with Keystone Funding. The fix and flip side is a different part of Keystone Funding than the credit side. I wasn't involved with the credit side but I can give some insight on the fix and flip side. I believe that WCAP is a lending company that they work with on fix and flip deals and I assume that they are of the same entity divided up for tax purposes.
Before I go into my experience, I want to say that I learned a lot and I think that Keystone offers a great opportunity. If you are interested I would say give them a try if you are motivated and willing and able to get properties under contract. But, if you decide to jump in ask me what you need to know and how to get off to a running start with them first. I would really like to see someone succeed with this program. I was determined, but it took me too long to figure out how they operate. I have a pretty good understanding now. I wouldn't want anyone else to go in excited and blind like I did. I will respond to any questions or comments.
It might not be a bad deal, but I am having problems communicating with them right now. I was given a free 30 day pass to their funding program simply for letting a fellow named Josh attempt to get me a better auto insurance rate. This would give me the chance to come up with the $500 to get started and then pay $100 per month thereafter. Of course, I was so exited that I had finally found the solution to my funding problem I didn't think to ask how long I was required to pay monthly payments after the initial $500. I'm a little sad that I no longer have access and can't seem to get anyone to help me get my acct reactivated. It may be for the best, I don't know.
Maybe I'm just ignorant but the email I received with my login information had a ton of info inside. I read it a half a dozen times trying to figure out where the welcome and q and a webinars were located that I was instructed to attend. I actually received an email from the webinar instructor Dalin, informing me that they would train me, but my team was my responsibility. All good and I completely understand that, but that email included where to find exactly what I had been looking for. This was triggered by a real estate agent I was working with on a deal in North Carolina trying to get the required due diligence period and closing dates for the contract. This contract is another story in itself. Anyhow, by this time I am nearly 3 weeks in, attempting to make another offer(new property) and learned that this property was within a Historic District. I wanted to make sure that a historic district wouldn't have any negative effects on getting funded, but never got a response. I am new to this side of the process and maybe they are just tired of my questions.
The problem here is I never received an invoice, a kiss my rear or anything. I finally, got a list of 13 properties from a local wholesaler that were really close to fitting their parameters ready to make offers. Received my comps from an independent real estate agent and now I am back to square one. Sure I can probably put any one of these deals under contract, but can't afford to tie up my funds for EMD's.
I'm a contractor, fix and flip is what I do and it looks like I'm going to be stuck there until I can save more money and get a credit score. Currently working on both steadily moving forward.
Thanks for the reply's guys.
Before anybody gets involved with Keystone or any of the layered corporate structures that are very difficult to peel back, step back and change your approach. Your Due-D on the company will be frustrating at best; so dig into the people you are communicating and / or working with as I did. What I found is that most of the professional backgrounds are calls center, scripted, high pressure specialists that work assertively to extract fee’s memberships etc. In our case, when you challenged them, they simply talked faster, in circles, deflected from the topic and flat out refused to provide references or a meeting at that business hqtrs. When they didn’t like what you asked, requested, looked into or questioned - the canned response was this isnt for you. Use google, use LinkedIn, use Facebook. You are simply considering a relationship with people. And, it’s the people that will or will not make the difference. Know WHO you are considering laying with, it’s not a corporation. Ask yourself this; if you brought them two deals a month @ $10k or $40k of profit, why’s are they pressuring anybody for a $3k membership??!! Sounds pretty silly right!?!?!? I dared them to provide 3 references and I would fly to Utah to meet the awesome AT MY EXPENSE. Guess what, no deal....
@Wayne Caviness Hey I am new to BP, so I’m just now seeing this post, but I am apart of Keystone funding. I really need some direction.
@Wayne Caviness, @Orlando Davis
What were the specific terms of the credit program and the fix and flip program? Did they not follow through or did you miss some of the deliverables / payments? Also, if they are willing to keep their end of the bargain, can you galvanize a few JV partners here to push you over the hump with them?
Good luck
If you live in or near a city with a population of 100,000 and can find deals under 65% of the ARV minus the rehab you may be able to make it work. To be honest, I think it may even need to be lower than 65%. The tool for determining your MAO sucks. You enter your estimated ARV, then estimated repair costs and your offer price. Rather than simply entering an ARV and estimated repairs to calculate MAO you have to keep adjusting your offer price until it gives a green light on your offer price. Then of course you need a minimum of 3 comps from a realtor to justify your ARV which makes sense.
Then it has to be approved for funding. I never made it to that point. Living over an hour minimum away from any cities made it tough. I finally gave up, after no response to my emails about a possible work around on assignable contracts with REO properties. I made offers constantly but never found anything that met their criteria other than one. The seller wouldn't come down on the $5,000 EMD. I wasn't going to throw $5k at a property that could possibly be rejected after the inspection period was up.
I also made offers to JV with wholesalers, but none of the wholesalers were even close to meeting the criteria.
Most of the hard money lenders want 15% interest plus origination points, talking to my cousin whose an attorney talked like he was interested in making that kind of return. So I will be offering my deals to him.
As far as I have seen Peter Veklesman has the best deal. You don't have to do the high dollar partnership, they have a $99 a month program where you can submit deals. If the deal is good enough they'll fund it or help you wholesale it.