Corevest Financial and Delaware LLC

[Gordon Way]

Hey BP-

I came across CoreVest through a referral. They have great rates for my portfolio and am happy with all the terms. However, the lender has said that I will need to create a Delaware LLC which will carry the note and have the properties deeded over under it. It will be an LLC within my current one. They setup and file all the necessary paperwork during closing. The reason stated is to enable them to easily securitize several loans and sell them on the secondary market. The strange thing is, I have requested any docs he has regarding this (marketing materials, FAQs, agreement template) and was told those don't exist. Am I wrong to be somewhat concerned? I can't go to my Accountant or Lawyer with small conversation and an org chart he sent that showed the structure in Visio?

My question is, has anyone closed a deal them and been required to setup a Delaware LLC? If so, what did they understand the implications of this requirement to be? Are they satisfied with their choice?

Thanks! 

[Bo Kim]

Originally posted by @Gordon Way:

Hey BP-

I came across CoreVest through a referral. They have great rates for my portfolio and am happy with all the terms. However, the lender has said that I will need to create a Delaware LLC which will carry the note and have the properties deeded over under it. It will be an LLC within my current one. They setup and file all the necessary paperwork during closing. The reason stated is to enable them to easily securitize several loans and sell them on the secondary market. The strange thing is, I have requested any docs he has regarding this (marketing materials, FAQs, agreement template) and was told those don't exist. Am I wrong to be somewhat concerned? I can't go to my Accountant or Lawyer with small conversation and an org chart he sent that showed the structure in Visio?

My question is, has anyone closed a deal them and been required to setup a Delaware LLC? If so, what did they understand the implications of this requirement to be? Are they satisfied with their choice?

Thanks! 

 Hi Gordon,

Yes I've closed 3 deals with them (1 portfolio 9 property package refi under a brand new DE LLC, along with 2 separate rehab line of credits ive closed under different LLCs - 1 indy, 1 little rock).

Im happy with my choice although they aren't the cheapest, but it got the job done (BRRRR a package of SFH/duplexes).

Hope this helps buddy!

Bo