CoreVest Finance Review (2024): Real Estate Investment Loans

Although an investment loan is an excellent choice when short on real estate investing capital, it requires a thoughtful approach since interest rates and down payments directly influence ROI in the long run.

In this review, we dissect CoreVest Finance to provide the insights you need to evaluate whether they offer terms that align with your investment loan needs.

• What Is CoreVest?
• How Does CoreVest Work?
• What Type Of Lender Is CoreVest?
• CoreVest vs. Competitors
• Final Thoughts: Is CoreVest Right For You?

What Is CoreVest?

CoreVest Finance, formerly Colony American Finance, is a private, nationwide lender specializing in real estate financing solutions.

The lender, based in Irvine, California, and a subsidiary of Redwood Trust Inc., opened its doors in 2014 with one goal: to enhance affordable investment loan accessibility or, as the company puts it, “to bring investment financing from Wall Street to Main Street.”

We checked out their website in our Corevest Finance reviews, and it’s safe to say they’re on the right track. Their financing track record features over 140,000 units, and they’ve since closed on over $20 billion in real estate loans nationwide. Corevest is led by Fred Matera, Ryan McBride, Micaela Lumpkin, and a team of other seasoned professionals with experience in the real estate industry.

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How Does CoreVest Work?

As a lender committed to unlocking the average investor’s access to affordable debt capital, CoreVestAmerican Finance lender LLC employs a loan execution process aimed at saving every borrower’s time and money. The company originates, underwrites, and closes on loan applications within 30 days. For some of its loan products, for instance, bridge loans, Corevest Financials can close in as little as a week.

Here’s how Corevest works:

• Online origination: Corevest loan applicants can submit their applications through either an online application or contact the hotline number on the CoreVest website. Immediately after, they’re paired with a relationship manager who’ll review their portfolio to determine the right loan size and price.
• Underwriting: After identifying the right loan product, the application is forwarded to an in-house underwriting team that works with the borrower through appraisals and valuation to ensure a seamless underwriting process
• Closing: If approved, the loan is closed within 24 hours.

CoreVest Loan Example

Eugenia is a new house flipper in California. She just found the ideal investment flip with a sales price of $250,000. After checking out CoreVest reviews, Eugenia has decided to secure a fix-and-flip loan. The lender expects borrowers to put down 30% of the sales price in cash, based on a 70% LTV. This means the loan amount she’d get would be $175,000. The interest rate is 8%, and the loan term is 15 months. Additionally, the lender charges a 2.5% origination fee at closing.

If Eugenia sells the flip for $300,000 and deducts the total costs, including the loan interest, origination fee, and initial cash contributions, she would make a profit of $21,875.

What Type Of Lender Is CoreVest?

CoreVest Finance is a private lender specializing in custom loans for residential real estate investors. They offer the following loan products:

Rental Loans

Corevestfinance.com offers fixed-rate rental portfolio loans designed for investors looking to purchase and manage new rental properties, refinance, or unlock existing equity. They range from $500k to $10M and are specifically designed for investors with a portfolio of five or more rental units. These loans are long-term with repayment periods of 3, 5, 7, and 10 years. To qualify for a CoreVest rental portfolio loan, an investor must also have a portfolio that meets the following requirements:

• Single-family rental, condo, townhome, multifamily properties
• A stabilized rental portfolio (90%+leased)
• Up to 75% of the value (70% in the third year)
• Note: non-recourse options are available

Read Also: Rental Property Calculator: How To Calculate Your ROI

Bridge Loans

Need to finance an existing fix and flip but are short on funds? CoreVest bridge loans are an excellent option. With minimums of $75k and maximums of $50M, CoreVest bridge loans suit a wide range of investors seeking short-term financing. They boast the following features:

• Designed for SFR, condo, townhome, and multifamily properties
• Can finance up to 85% of the cost
• Short-term: 6-24 months (extensions are applicable)
• Fixed and floating rate options
• Revolving credit and non-recourse options are applicable
• Foreign nationals are eligible

Read Also: Fix & Flip Loans: A Beginner's Guide To Funding A House Flip

Build for Rent Loan

For investors looking to venture into rental investments, Corevestfinance.com offers build-for-rent loans. The terms of this loan include:

• Only single-family and townhomes are eligible
• Loan limits: $3M-$50M
• 24 months with applicable extensions
• Covers up to 75% of construction costs
• Covers 65% of the value of stabilized assets
• Fixed and floating interest rates

Read Also: How To Start A Rental Property Business: A Step-By-Step Guide

Multifamily Loans

If you’re a real estate investor specializing in multifamily properties, you’ll be glad to know CoreVest offers a niche product catering to your market: multifamily term and bridge loans. Check out the terms for CoreVest’s multifamily term loans:

•  3, 5,7, and 10-year terms
•  Suitable for multifamily, condos, and mixed-used investment projects
•  Range from $1M-$50M
•  Cover up to 75% of value
•  Interest-only and amortization repayment options
•  Ideal for purchase or refinancing

If you require short-term financing for your multifamily investment project, CoreVest Multifamily bridge loans are a suitable option. They feature 18-24 month terms (extensions applicable) and are designed for multifamily, condos, and mixed-use investment properties. Additional terms include:

•  Loan limit: $3M-$15M
•  Up to 75% of project cost
•  Interest only
•  Borrowers get no call protection/lockout

CoreVest vs. Competitors

As noted, CoreVest is one among countless REI mortgage lenders in the market. Here’s how the lender performs against other providers:

CoreVest Finance vs. Visio Lending

Visio, established two years before CoreVest, is a popular lender specializing in residential real estate investments. They offer similar products to CoreVest, except unlike the former, they accommodate vacation rentals. Also, while CoreVest usually limits LTV to 75% on most of its loans, Visio offers an LTV of up to 80%.

CoreVest vs. Lending One

Lending One is a lender specializing in real estate loans. Their loan product portfolio features some of the loan options offered by CoreVest, but they have a much more comprehensive range of options for investors. For instance, they offer landlord mortgages and niche-specific products like fix and flip loans with a 90%LTV.

Generally, they're an excellent option if you’re seeking a lender with diverse loan products. Still, if you want one with extensive loan limits, CoreVest Finance is a perfect choice since they offer an average of $75K to $10M, and some of their loans feature maximums of up to $50M.

CoreVest Financials vs. Lima One Capital

Lima One Capital is a real estate lender established in 2010. They offer new construction, build-to-rent, rental, multifamily, fix and flip, and short-term rental loans. Their product portfolio is similar to CoreVest’s, except that CoreVest doesn’t offer short-term rental loans.

Also, while CoreVests often limits its loan-to-value ratio to 75%, Lima One’s starting LTV is 75% and can extend to 85%, depending on the loan product. Their loan limits are, however, similar ($75K-$10M). Additionally, they both boast incredible proven track records, with Lima One Capital having funded REI projects worth $ 7 billion.

Final Thoughts: Is CoreVest Right For You?

Corevest not only specializes in real estate but also offers investment loans nationwide. The best part is that they also accommodate foreigners and consequently stay true to their mission to make financial liquidity accessible to all.

While they don’t cater to vacation rentals, their portfolio features short and long-term loans, from general options like rental and rental portfolio loans to niche-specific loans like multifamily term and bridge loans, products the majority of investors would benefit from.

Furthermore, they offer fixed and floating rate options and have a proven track record, meaning they’re reliable.

But are they right for you? Simply put, CoreVest stands as a lender we’d recommend. However, we advise you to weigh your investment needs compared to what they offer to determine if they’re the lender you need.

Looking into real estate investing? Contact Real Estate Skills today and let our team of experts guide you on your path to becoming a successful real estate investor. Whether you're a seasoned pro or just starting, we offer personalized strategies and support to help you achieve your goals.

*Disclosure: Real Estate Skills is not responsible for the information provided by CoreVest or on its respective website. CoreVest is an independent company which provides real estate services to investors. Real Estate Skills trains on using CoreVest and the benefits of using the service but is not responsible for the content it provides.