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Updated 3 months ago, 09/06/2024
Anybody familiar with Keystone Funding Network?
Just doing an upfront due diligence because I am interested in working with them. Kindly let me know about any positive or negative experiences with Keystone Funding Network (Not Keystone Funding), I need to know about the network. Thanks.
I'm checking them out now. I have a client that has 5 deals funded by them right now. Apparently its a one time fee of 3k to be able to submit properties for funding. They fund 100% of the purchase/ rehab but keep 50-60% of the net profit.
I'm checking them out too. Will let you guys know how it goes.
@Priscilla Burnsed, @Antonio W. thanks for checking them out. My main concern is how long it takes to process deals after placing an offer. Also what their approval rating is when a deal meets their parameters. I asked the person who called but could not get straight answers. Many thanks.
Hello! Any updates on the topic? I'm in talks with them as well. Sounds pretty solid, just a bit hesitant to jump in with all the other stuff out there. If they're selling funding, I'm in. If they're selling course after course, no thanks. I'll follow this thread and report back if I move forward. Thanks!
Update....they refused to fund a deal 5 days before closing. Now the buyer is being held liable for damages and commissions. Be careful dealing with these people. We had the green light to close up until a few hours ago.
I am looking forward to enrol in their program. I am located in California and they their office is in Utah. Maybe they they have several offices. Anything more about this company? Or Do you guys any recommendation?
@Priscilla Burnsed, out of curiosity, did it pass the "Tier 1", but not the "Tier 2"?
I spoke with them more, received their requirements and flow doc, and have the sheet ready for enrollment and payment info. Has anybody done successful deals with them? I'm a little worried that I'll sign up and none of the properties I find will meet their "criteria".
Out of curiosity, would anybody be interested in reviewing their requirements or process? I don't mind copy and pasting. Please let me know and I'll be happy to share.
@Priscilla Burnsed, I just recently did my second interview with Marcus Erwin. I'm looking to sign up brut still uncertain about a few things. It sounds too good to be true. Can you explain the company's reason for not funding the deal and waiting until the end to inform their client?
Hi, @ Antonio W. have you found out any other information on Keystone funding network?
@Mark Brauer I am Interested in learning more about the company. I share the same sentiment of skeptism when it comes to finding properties and receiving the ok. I had an interview with Marcus Erwin and I'm just trying figure out if giving 3,000 is a gimmick to increase revenue for their company, being that it's a fairly new.
I am very interested and currently following this thread. I am frustrated at moment, my fiancee joined KFN about a month ago now its feeling like a scam. Emails answered untimely, POF banks and realtors have had extremely difficult verifying. Have 2 deals on table approved stage one just dont want payout more $ for verification on stage 2 if this is BS
@Heidi Hatter I appreciate this information. I am highly interested in learning more. I too think this company may be a scam.
Your welcome @Nicole Dantz I will definitely keep up on this thread, it is amazing to me all the research I've done and little information found on this company......wish I would of done more before signing up and to come to find out they just verified themselves they only been in business under KFN since January. IDK I am more frustrated with myself than anything, but we have attorneys, realtor, mortgage broker and RE investor telling us this is BS/scam so why am I still pondering on it lol I guess cause they have a hefty $down payment and my CC on file to deducted monthly fee! It says to cancel write them which we did now their sending us on run around with that.
@Heidi Hatter I thought it was a gimmick especially when I had the interview. It seems that he was only interested in getting the down payment of $1,000 . He fast talked me and barely answered any questions. I think getting the $3,000 is just a way to create capital for this up and coming company. I don't beleive they have people's best interest at heart. It's just best if you do everything on your own with your own money. I'm just starting out so the process many take longer but at least I know that I'm not wasting $3,000.
Originally posted by @Arno Karssen:
Hey Jennifer, this isn’t a forum to answer the dozens of questions we get, so please contact us directly. But since others are reading I will address this one briefly.
I am not sure where you got the 10 day requirement from, unless you are referring to the general rule of thumb that we can’t even consider properties if they are submitted too close to a closing date.
In welcome emails, how-to’s, a welcome webinar, direct emails and weekly Q and A webinars we address all questions like the difference between initial requirements and due diligence. Every possible way we could think to inform you of we use, and since you aren’t the only one asking your question is actually already addressed in all those areas.
More specific to your question: a BPO and and inspection are not the same thing, and inspections take time (we don't do them ourselves of course). We never tell a client "we are for sure closing" but we do tell clients if we have initial interest based on numbers they provided. We (try to) explain and caution people On every platform we have (including on our website for everyone to read). Please read up on comps and ROI and why they are part initial evaluations but not of due diligence. While we are faster than most financial institutions we sometimes discover last minute details (thank heavens!) that avoid financial disaster and we put a stop to funding.
Also, we shouldn't be your only financial solution. You use our POF and VOD to tie down the property and if the deal is good and under your name the likelihood of finding funds significantly increased. If no one else is interested there is probably a good reason. We are not a high-risk solution:)
Real Estate is difficult for a reason. Disappointment is a major part of Real Estate success. Disappointment and risk (I.e. financial loss) are linked if you try to do Real Estate solo (vs with us), which exactly why we started the program. At least we can somewhat disconnect financial loss from inevitable disappointment. But it doesn’t take many properties to turn many disappointments into a massive win.
And now you see why we don’t address questions in forums like this, the answers are never short. Hopefully this gives you some idea of the many ways we try to help.
- Lender
- Lake Oswego OR Summerlin, NV
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sounds like the do hardmoney model and from the same neck of the woods.. would not be surprised if it was the same actors or an off shoot of them
- Jay Hinrichs
- Podcast Guest on Show #222
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.
I just spoke with Marcus - and considering this as my partner and I are just getting started. Looking forward to any feedback out there about this company.
I am a current client of Keystone Funding Network. I have closed on one deal and we are in the middle of the renovation process now. The property is located in a very hot area and we have a projected profit of $70k.
I have another deal schedule to close next week and another the beginning of next month; both using them as my JV partner.
My advise is to make sure your numbers are right, know your time line and negotiate good terms in your contracts and you'll be fine. If you can't do these things with or without Keystone Funding Network you will fail as an investor.
@Jason Harlin how long have you been with the company?
I think I joined their network in April or the beginning of May if I remember right.
No one ever says what percentage of their deals are accepted/denied. Most of these hard money lenders require some form of credit/proof of income and a fee for each submission. How many deals have you submitted and how many refused since then @Jason Harlin? Anyone know some good alternatives that are similar?
There is definitely a learning curve however, I only submit offers for review that I am 100% confident are going to pass their requirements. of the last three deals I've submitted for review two of them have been excepted and one is this still in the process of having the appraisal done.
Also just so you know, they are not Hard Money Lender's they are your joint venture partner in every aspect of the deal. They use their own funds as well as secured loans on their credit through other Hard Money Lender's to help make the deals happen. So you are not using your own credit or your own capital.
The best advice I can give to you if you're going to use them as a joint venture partner is to know your numbers and to make sure that your terms are good enough to give you a way out of any contract without any financial ramifications. But that's what you should be doing as an investor in any all contractual obligations your commiting yourself or entity to.