By Hunter Latta
As we become increasingly connected through phones, tablets, computers and other devices, we get used to having answers readily available at our fingertips or voice command. We expect answers fast, and most are a quick Google search away. Similarly, real estate investors looking for financing want quick answers. They want to know what a lender can offer on their deal and how quickly it can be funded. When time is of the essence, the faster investors can get a soft quote from a lender, the sooner key business decisions can be made.
Below, I will break down Corevest’s two product lines and items investors should have ready when they submit their deal. These guides will help loan originators better understand what he/she is looking at and ultimately help investors get a soft quote quickly. Taking the few extra minutes to put these items together beforehand will decrease the time between deal submission and soft quote.
Guide for Rental Portfolio Loans
For term loan submissions, have the following items ready for your originator:
- Property data tape – a few helpful hints for the data tape:
- Focus on the column headers in red which are the most important areas (although the more data your originator has, the better). If you have the additional data, please include this on the data tape.
- If you have recently updated the units, let the originator know in the condition section with something along the lines of, “recently renovated”. If the units need work, write something along the lines of “average condition, could use some rehab” or “needs rehab – kitchen needs to be updated”. This is helpful information to your loan originator.
- When estimating values on the properties, it is important to spot check the comparable sales near your properties. This will help you either confirm your estimated value is close or adjust your values to something that is closer to the comparable sales.
- Know your estimated credit score:
- Our minimum credit score is typically 660
- If you have any credit issues that could come up on your credit report, let your originator know before submitting the deal for a soft quote.
- Know your current liquidity and net worth:
- CoreVest has a minimum liquidity requirement of 5% of the loan amount
- We also have a minimum net worth requirement of 20% of the loan amount, not including the assets that we are financing.
Guide for Credit Lines
For bridge loan submissions, have the following items ready for your originator:
- Personal Financial statement
- Bio/resume detailing your background and experience (a 1-page document detailing who you are and what you do)
- Number of projects completed
- Written Business plan
- How many projects you intend to complete over the next 12 months
- Scale and scope of these projects
- Markets you intend to invest in
- Know your estimated credit score
- CoreVest typically requires a minimum credit score of 660
- If you have any credit issues that could come up on your credit report, let your originator know beforehand, when you’re submitting the deal for a soft quote.
Things to consider when putting this together:
- If you are seeking a build-to-rent deal or one of our multifamily loans, please also include the following:
- Rehab budget detailing both hard and soft costs
- Proforma operating statement
- Architectural plans/renderings
- Market studies, if you have them, supporting your proforma numbers
- Written project summary detailing:
- Rehab timeline estimate
- Bio on the general contractor
- Lease up strategy
- Highlight any additional deal strengths that you feel are key to the project
Taking the extra time to put the above items together into a clean submission will help your originator put together a quote faster, ultimately helping you make quick informed decisions. At CoreVest, we strive to make the process smooth and seamless for you. If you have any deals that you would like to discuss, feel free to reach out to Hunter Latta at 949.304.5928 or email firstname.lastname@example.org.