The one thing that seems to block most people from realizing their dreams is fear. To many, the scariest part of real estate is securing funding. New investors look at lenders as haunted houses and dread the process of funding their deals. Most fear is born of not knowing. Our goal is to provide you the knowledge you need to approach real estate financing unafraid.
“Only Thing We Have to Fear Is Fear Itself.”
President Franklin Delano Roosevelt
If you know the real estate loan process, you need not fear. The process, here at Cogo, is simple and, if you are diligent in providing the information requested, it is a fear-free operation. Here is how it works:
Get an Approved Purchase and Sale Agreement
To begin the loan process, you need a property under contract with an approved Purchase and Sale Agreement. To be approved at Cogo, the agreement must be on a non-owner-occupied property, the buyer must be a registered business entity, (LLC, corporation, or self-directed IRA) and the deal must be profitable for you. Almost all Lee Arnold System programs include a sample Purchase and Sale Agreement, and many come with the REIW Contract Creator. To see if your deal fits the profitability criteria, plug your numbers into the Minimum Allowable Offer Calculator on the Cogo Capital website HERE.
Complete the Application
Since Cogo is a premier private money lender, the application process focuses on the real estate deal and whether it is structured to be financially successful. You will need to complete the online loan application packet provided by your Cogo Loan Officer, including a licensed contractor bid on the expected repairs and rehab on the property, and information about your financials and properties you currently own. When you want to start, just give Cogo a call at 1-800-473-6051, or start your loan application HERE.
Our Loan Officers and Analysts are not scary at all and sincerely want to help you achieve a successful deal.
Schedule an Appraisal
Since Cogo loans are predicated on your profitability in a real estate deal, we need an appraisal of the property’s value; especially the expected After Repair Value (ARV) when the rehab is completed. We order, and you schedule, a licensed appraisal and you need to gather the documents we need to finalize your loan numbers.
Submit to Underwriting
Once all the information is submitted, your deal will go to the underwriter. The underwriter’s job is to consider if you are going to be successful and profitable in your deal, the documents you submitted complete and verified, and how you plan to pay off the loan. To see the criteria of our loan programs click HERE.
Close Your Deal
The last step is the best part! This is where we fund your deal. During this funding stage we set up the legal documents needed for closing, establish the escrow account that will fund your rehab, and wire funds to closing. After you successfully close, the rest is up to you.
No Fear Funding
You can see that getting your deal funded is not the “boogieman” of real estate investing. Our goal at Cogo is to help you succeed without nightmares or terror. We want you to know how to fund your deals and see behind the curtain of loan process. One of the best ways learn about real estate funding and investing is attending one of our tuition-sponsored Funding Tours. Almost every week, across the country, we host a three-day intensive real estate workshop that gives you tools to succeed in real estate.
Register to attend an upcoming Funding Tour and immediately receive a $250,000 pre-approval letter for buying real estate investment properties!
Click here for your ticket to funding
Lee Arnold is an Internationally recognized speaker and a 30-year veteran in the real estate industry. He’s been featured in articles in Forbes, the Boston Globe, Market Watch, Reuters, and Business Week. As CEO of Cogo Capital, Lee has guided the company from a one-man operation to a multi million dollar company that connects investors with private lending opportunities and alternative investments in real estate.