Mark
Here are the guidelines and stipulations to submitting deals to Keystone Funding Network. Who ever you spoke with should have sent them to you.
Project Parameters:
Flips only, no buy and hold
Residential only
Cost to Value (purchase and rehab budget) to be around 70% of ARV or below
Profit is shared at 50% (after costs, deposits and fees)
Properties must have $50k profit or more
Prefer homes in suburban areas with area population above 100k
Most projects approved will be flips, wholesaling to our network is considered as well
Sales contract should be in your name and assignable (we can make it work if it isn’t)
Please include the following information in when submitting a project for evaluation with our funding group:
-Stage 1-
Initial Project Submission. Please us the Project Submission Calculator on
the site. Items you will be asked for will be:
Address:
Purchase Price:
Rehab budget:
Estimated Term needed:
Estimated ARV:
Square Feet:
Configuration (Bedrooms, Bathrooms):
Rehab short description:
Explain why this is a good deal:
Your history in real estate (including number of flips):
Any other comments about the project:
Include a Property Data Sheet (MLS Listing, FSBO Ad, Auction Listing, etc)
Also include a minimum of 3 Solid Sales Comparables – preferable realtor generated
*Once all of stage one above is sent in it can take up to 24 hours for approval to move on to stage 2.
Stage 2 on the following page.
1
Page 2 of 2
-Stage 2-
After initial review we’ll need the following items sent to processing (Note: all costs
at this point are your responsibility & don’t guarantee funding):
Inspection from a professional inspector
BPO or Appraisal (Please see guidelines below for a BPO)
REPC
Dates: Inspection Period, Settlement Date
Detailed Renovation Budget from 3 contractors (please tell is which contractor you feel best about using)
More info may be needed as we move forward, it depends on the best structure for the deal
*Once all of stage 2 is submitted in will take a few hours to review and if everything is approved it can take up
to 10 business days to close.
BPO Guidelines:
Please do not use your buyer’s agent to do the BPO. Someone within their brokerage is ok. Most agents are very familiar
with BPOs and what is needed to complete one. Please have them include their normal information on a BPO as well as
the following:
1. AS-IS value
2. After Repair Value (based on rehab plans)
3. Comps that are as close as possible to the subject and not more than 90 days history used (unless there are no
other options, but that will need to be justified in the BPO by the broker)
4. All comps must have Days on Market data with them for each comp cited
5. Average Days on Market for the immediate area around the property
6. Answer: Will this property make a good flip?
Sometimes a BPO does not get us comfortable enough with a property and a full appraisal may be required depending
on project size and other factors. If an appraisal is needed, please get a link to pay for it from us. Do not order an
appraisal on your own.
