Investor · Camas, WA · Member since 2015 · 82 posts · 56 votes
I have been approved for a large acquisition/renovation LOC from Corevest Finance. I am planning to use it to significantly expand my portfolio (mainly BRRRs along with some fix n flips) lin three different markets
The rate is quite competitive 9.95% IO and 2% for each advance (per deal).
The LOC is for 18 months and no draws alllwed in the last 6 months.
It does have underwriting and closig fees of about 2-2.2k. After 18 mnths line can be renewed for another term for about 800-1000.
I havent closed on it yet and wanted to run it by you all to get an opinion from some of the experts here on BP.
Does anyone have experience with Corevest Finance for their LOC or with Corevest in general on any of their other offerings.
I did some research on the company and they are definitely legit. They were Colony American Finance which was renamed and are or were a part of blackstone group I believe
If any of you have any experience or information about the company it will bw great if you can share.
Thanks in advance
I used Corevest end of last year to cash out 2 SFH. It was a 30 years fixed rate at 6.875%. Prepayment penalties for the first 3 years. Closing was smooth and quick. More importantly, they only underwrote the property. Not my entire portfolio.
Here're the fees that they charged me.
CoreVest Fees:
Loan origination fee 1.00%
Processing Fee $1,295.00
Loan Doc Fee $295.00
Additional Costs:
Appraisal and market rent analysis Fee average cost is $550.00
CDA Review $75.00
Flood Cert $15.00
Credit Report $24.95, if foreign national, please discuss cost with your processor.
Background Check report: U.S. citizen $100.00, if foreign national, please discuss cost with your processor.
Tax Service (one time fee for yearly tax certification for taxes owed for proper payment and escrow requirements) $105.00
Title Charges, recording fees and escrow: variable $ amount
If borrowing in an LLC $350.00 for attorney review
Condo Underwriting $125.00 (if asset is a **condominium)
@Vik P. I did not use them..yet....I have been shuffling things around...but as we grow and waiting for other properties to sell we need to find a better financing options.
@Marylynn B. Just to clarify your previous post, did Corevest ask you for prepayment of fees and is that why you were hesitant? It sounded like the fees should be in the closing costs although I just said no to 5 Arch because there were asking for $$ to start the application process which I have never had to do before with any of my lenders. I just asked Corevest whether they needed a pre-application fee to start the process, and they said no only appraisals were needed to be paid to process the application. Is that different from what Corevest told you?
I've had the unfortunate experience of beginning to use them. Their terms are not the best out there. But if you are desperate to get a deal done, then they do take action. I will update you after my cluster has been resolved with them. Steer clear as I wished I had done my research ahead of time and wasn't pressed to make a decision to use a lender without my research of the firm that I was going to be doing business with. Research, Research, Research and do not send a company like this money ahead of time.
@Dante Pirouz my apologies for my late response. From what I remember there was a fee for the credit application that was over 2000. I could be wrong but that was my recollection.
Hi....l used a HM lender way back in 2006...boy have things changed! I just finished the application process with CoreVest and l'm waiting on pricing. I will be doing one property at a time BRRR . l will be using their bridge loan product or rental product for my acquisitions. I have not spoken with or researched the other HM company Sortis mentioned in this post . Has anyone out there used Sortis?...secondly has anyone used CoreVest for acquisition funding...not using their LOC product...?...
Hi guys, I'm a Loan Broker and have just found out about this LOC from Corevest. It seems like an excellent product for my clients and target audience. I'm currently making sure I understand it perfectly as it seems like a hybrid between an LOC and a regular bridge loan. Just wanted to see if you still recommend it?
Hi...l just started working with CoreVest....they do have some great products. Make sure you understand their criteria for each project. They are definitely above board and Sean Troncosco is great to work with....very thorough in explaining their products.
@Vik P. I have not deal with this lender but similar to other LOC. But I can say there are better options available.
50k min liquidity x10 LOC.
90% LTC- 100% rehab -75% LTV ARV max.
12 months term on each deal you submit
You can submit a deal 30 days before the 12 month review.
2 options available- interest on full amount or interest on purchase and rehab (lower rate)
I am sure there are. I would like to know more about it as all my properties are off the line as of today (refinanced into 30 yr fixed) and the draw period on my line is past 12 months so it's open just for name sake anyway. I have an option to renew it which I may consider.
Can you share the name of the vendor or PM me please?
Yes, I have a institutional revolving credit line $3-25M (reusable per project based on a simple $2500 fee to use each time and no underwriting) they do not offer revolving line only regular line from $1-3M. I highly recommend it if your a serious investor (difference between hobby and business). Must have 20% of the LOC in assets, 5% liquid, taxes required 2 years and a 650 credit, If you need details just contact me thanks.
This loan is designed for the active investor who actually has at least $600K in assets ( could be property, 401K or cash, retirements but must have 5% liquid.) If you making headway in the Real Estate game and want to have an available credit line this is the way to go. This is not a blanket credit line it is property based you can leave it unused for 18 months if you don't use it it expires.
I really like this product because you don't have to go through underwriting every 3-6 months of flips or projects. For those reasons alone if you going to get money form a lender this is the way to go. I can do 3-5 flips a year depending on fast I move.
@Vik P. I have not deal with this lender but similar to other LOC. But I can say there are better options available.
50k min liquidity x10 LOC.
90% LTC- 100% rehab -75% LTV ARV max.
12 months term on each deal you submit
You can submit a deal 30 days before the 12 month review.
2 options available- interest on full amount or interest on purchase and rehab (lower rate)
I am sure there are. I would like to know more about it as all my properties are off the line as of today (refinanced into 30 yr fixed) and the draw period on my line is past 12 months so it's open just for name sake anyway. I have an option to renew it which I may consider.
Can you share the name of the vendor or PM me please?
Yes the Long Term Rental loan is a ballon product 5-7-10 years and it amortized over 30 years range of 5-6% under your business name or LLC. They will finance unto 75% of the LTV of the property based upon an appraisal by their 3rd party appraisal service.
This is where people get into trouble and are dis illusional. Everyone thinks they are sitting on a pot of gold like a leprechaun and over estimate the Value of the property. Be realistic on the LTV and you will be happy, be unrealistic trying to cash out all your equity which is a rookie move but feel free to do it, I don't recommend it.
@Vik P. Can I know any details about the product you choose as LOC or HML mainly for flippers? Not for BRRR, not for Buy-and-Hold? Thanks
Hi Vincent,
I am not a flipper but I think Corevest LOC or similar product is a very good option IMO if you're an active flipper and plan to do lot more flips in a year.
If it's going to be a few flips in a year it might be easier and cheaper to go with HML or private money lender.
@Vik P. Thanks, so do you have any good experience for HML side? I plan to do a few flips (5~6) not too many ,so HML is way for me to go, thanks
Not really. I do have a point of contact @ Sortis Financial who do private money lending but I haven't used that resource yet so can't really say good or bad things about them
I have studied most of the available loan products out there. IMO it really depends on your strategy and your investment style what your overall plan? I work for a lender my honest opinion is don't borrow money at all. Let me explain. Lets use a simple $300K flip for numbers. On average it cost you 2 points plus closing costs to acquire this property.
1.Cost to get loan funded most lenders 2 points and up= $6k
2.Closing costs = we will round it up to $4k
3. Carrying costs = 6 months is average flipper hold time 10% intrest average soft money loan cost = $2400 a month = $14,400 (minus downpayment of 60K) = $2400
Total costs to acquire and hold minus all other non financial costs = $24,400
You guessed it! On average a $300K home costs you $25,000 to hold in financial costs!!!!!!!!!!
This means you need to profit an additional $25,000 per project to come out ahead, want to make $25K in profit from the start of your project don't borrow money.
So this is one of the many mistake undereducated and ill advised real estate investors fail to take in to account the real amount of money it costs to carry most projects.
Like I stated its better to not even borrow money if you can avoid it at all costs, and it does cost about $25,000 to borrow!!
I have studied most of the available loan products out there. IMO it really depends on your strategy and your investment style what your overall plan? I work for a lender my honest opinion is don't borrow money at all. Let me explain. Lets use a simple $300K flip for numbers. On average it cost you 2 points plus closing costs to acquire this property.
1.Cost to get loan funded most lenders 2 points and up= $6k
2.Closing costs = we will round it up to $4k
3. Carrying costs = 6 months is average flipper hold time 10% intrest average soft money loan cost = $2400 a month = $14,400 (minus downpayment of 60K) = $2400
Total costs to acquire and hold minus all other non financial costs = $24,400
You guessed it! On average a $300K home costs you $25,000 to hold in financial costs!!!!!!!!!!
This means you need to profit an additional $25,000 per project to come out ahead, want to make $25K in profit from the start of your project don't borrow money.
So this is one of the many mistake undereducated and ill advised real estate investors fail to take in to account the real amount of money it costs to carry most projects.
Like I stated its better to not even borrow money if you can avoid it at all costs, and it does cost about $25,000 to borrow!!
I agree. Know your numbers really well otherwise it can bite you.
I'd highly recommend using 'Property Fixer' from realestatetools.com. I have the app even though I am a long term buy & hold investor and not a flipper.
I bought their 'Property Evaluator' app which is excellent and a 'must have' I feel for any buy&hold investor and it got me into buying their 'property fixer' just in case if I ever need it. Combined I paid 75 or 80 bucks on those two apps for full versions but those are the best 80 dollars I have spent in my real estate business.
@Vik P.This is a really informative threat, thank you Vik for the information. I am in the process of setting up a CoreVest LOC. It'll be my first time using HM-type funding. Do they charge interest on the amount drawn at the time, or is interest charged the total amount that would be tapped from the LOC, regardless of whether it's been drawn or not? For example, if acquisition requires $70k to be drawn from the LOC and rehab requires $30k, and I tap in to the 70k for acquisition but haven't yet tapped into the $30k, do I get charged interest on the $30k?