SHORT TERM, FIX-AND-FLIP LOANS

Our current loan product is perfect for new investors, as well as the students that have gone through our education platform. Typically referred to as the “Cogo Box” our core offering focuses on deals that meet (but do not exceed) the FHA cap.

However, many investors are looking for higher LTVs, lower rates, and less stringent requirements on things like baseline inspections, tax impounding, and licensed contractors. For these reasons, we expanded our loan product line.

Our updated family of loan products better serves market expectations for investors new to Cogo lending platform.

THE NUMBERS	TIER A	TIER B	TIER C
% Of Purchase	90	90	90
% Of Rehab	100	100	90
% Of Max ARV	75	70	65
% Of Max LTC	90	90	90
Experience	2 Deals/2 Yrs	2 Deals/2 Yrs	1st Timers Okay
Credit Score	720+	660–719	No Minimum
Cashout	65% – no max (6 mo seasoning)	60% – 150K max (6 mo seasoning)	50% – 75K max (6 mo seasoning)
App Fee	$197	$197	$197
FHA Cap	Loan Amount	Loan Amount	ARV
Baseline Inspection	No	No	Yes
Tax Returns	No	No	Yes
Well/Septic	No	No	Yes
Impound Next Yr Taxes	No	No	Yes

Apply for a Short-Term Loan

Get a Prequalification Letter

Get a Proof of Funds Letter

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LENDING CRITERIA

The first part of every successful fix and flip is finding the right real estate property. That’s why we’ve created this easy, 5-point guide to help you find the “sweet spot” deal, which can give you the best chance at making money in real estate, while safeguarding your investment.

At Cogo Capital we are only interested in funding projects that will give you the best opportunity at realizing success. Therefore our criteria is centered around these 5 points:

What is the Federal Housing
Administration Loan Cap in Your Market?

Choose the state where the property is located:

Choose the county where the property is located:

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WHY THESE CRITERIA?

Homes above the FHA cap are statistically more likely to experience drastic fluctuations in value and can be more susceptible to local and overall market depreciation. Homes in the 5-point realm tend to be more resilient to these influences.

Why 1-4 Units?

This is important. When you invest within these parameters, you can attract a larger segment of the market, including FHA buyers. This increases your ability to appeal to more people in more demographics.

Why price your home at or below FHA requirements?

FHA loans bring home ownership into reach for first-time home buyers who might have a hard time getting approved with conventional lenders. This increases your ability to sell your property faster and broadens your ability to attract more potential buyers.

Why a smaller home with no more than 5 bedrooms and 3 baths?

Millennials and Boomers are the two segments expected to dominate the market in the next five years. Both of these segments are looking at smaller homes: Millennials because they’re just starting out; Boomers because they’re downsizing. Candace Taylor of The Wall Street Journal wrote, “These days, buyers of all ages eschew the large, ornate houses… in favor of smaller, more modern-looking alternatives.”

Why less than 1/2 acre?

Both Boomers and Millennials are looking for less upkeep: Boomers because they’re getting older and Millennials because they’re just starting out. More acreage also means more expense.

Cogo Capital’s slogan is “investing made simple.” This keeps it simple while giving you the best chance to make money in real estate!