Kiavi - Would you recommend them?

Question

I'm thinking of using Kiavi to fund my next fix and flip but they get terrible reviews on BBB.  Does anybody have any experience working with them?  Good or bad?  Thanks!

Dave Harlan · Answer

Can anyone name the companies that would be better to use?

Daren H. · Answer

I have used them for about 10 fix and flips. I have gotten use to the platform and my account rep answers any questions I might have and is very helpful and responsive. When I started out with them a couple of years ago (they were Lending Home I believe) they were at 1pt $999 Processing Fee, and in the 8%-9% interest range. Now rates are up in the 10% range but still 1pt, $999 processing fee. They do an upfront application but after that I don't recall having to provide any additional information on my personal financial situation. I believe they might do a credit pull annually and reapprove if all is good. You can also get certain status after doing a few deals that go well where some of the admin work is trimmed. They do in house evaluation for the ARV and no formal appraisal. They don't do any type of interest payment holdback (where you pay interest payments upfront for several months). They do holdback rehab funds. The draw process has been quick and easy now. I just request a draw online and the inspector schedules with me and they wire you your funds if all is good. The only issue I have is they always seem to have a back and forth with the title company and insurance agent about wording they want on the title commitment and insurance policy or some form of documents. I currently have 3 active loans with them. 1 project complete, under contract and closing end of the month. The other 2 are in work. They will be funding a new project in the next week. So far, so good with them to quite honest. There are other lenders with similar rates. If I had something I needed closed in a week from start to finish, I would actually use another lender that I know has more speed. I am generally not under these conditions.

Robin Simon · Answer

You should follow the reviews and reputations closely, plenty of other lenders out there that have better reps.  Kiavi has invested a lot in technology and branding, but at the end of the day you probably are going to want a more personal service-oriented experience (a real human being!) guiding you along the way!

Mark Munson · Answer

I just posted my experience in another thread, but see below:I've done roughly 120 loans with them over the last 14 months on the broker side and have worked with just about every major lender in the space too. They aren't the best when it comes to DSCR loans, but that isn't to say their DSCR program is bad. As for short-term financing, they are fairly easy to work with but the biggest hurdle is their internal credit model. People with good credit scores can even be denied. If you get past that, it is a fairly easy process. As mentioned above, they have some of, if not the best, tech/portal out there. However, you aren't going to get the best communication at all times and much like most lenders, there won't be a large degree of consultancy on investing. Most loan originators you talk to at the big lenders are just capable of reading you terms off of a rate sheet, beyond that they aren't the best at actually giving you good advice. Most of the time they are young 20s and fresh out of college and never owned a pierce of real estate. That may not matter to you, but I tend to want to work with other investors, even my loan originator, realtor, title company, etc. You also want a point of contact that knows underwriting too, that way they are proactive in ensuring your deal will get to the closing table. Cheap rates and modern tech are great, but none of that matters if they can't actually get you to the closing table. Just make sure whomever you work with is halfway competent and communicates well, the latter is the most important. Feel free to reach out if you need any more advice. Best of luck!

Erik Estrada · Answer

They are okay. If you work with a broker that can navigate their platform, you will have a good experience. There are better lenders though.

Becca Pariser · Answer

Alex / Melissa - do you have any recommendations for companies or individual brokers to use?

Alex Bekeza · Answer

@Melissa Barnes They have a great product but you're better off using a broker who has access to their wholesale pricing matrix and can handle the customer service side of things.

Issac San Miguel · Answer

From what I understand, their lending parameters can be difficult to navigate at times.  In addition I hear they are slow to perform and the roadmap to closing can be difficult to understand.

Eric Miller · Answer

I am a mortgage broker and have been using them on and off for a while. I think their pricing is good and their portal is amazing but they just feel like a big lender to me. I feel like they require more documents than other lenders. It does help to have a good account manager over there.

Dave Harlan · Answer

That was me on the other thread also lol, but thank you again.

Kiavi - Would you recommend them?

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