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Common Investor Questions
- Can I use my free and clear property to fund non-owner occupied investments?
- How Does Katmandu Funding LLC Decide How Much To Lend?
- I need 100% financing. Can you do that?
- How can I do deals with my IRA?
- I Want To Borrow Money Based On The ARV Of The Investment Property I’m Purchasing Or Own. Is This Something You Allow?
- Why Do I Need To Buy An Appraisal When I Already Have A CMA Or Existing Appraisal?
- What Are Your Rates And Loan Origination Fees?
- Is Credit The Deciding Factor In Katmandu Funding LLC’s Decision?
- How Long Does It Take To Close A Transaction From Start To Finish?
- How Much Does The Appraisal Cost?
- I’m A Sole Proprietor. Can I Still Get A Loan?
- I Am Seeing A Lot Of Good Deals On Auction Sites And At Live Auctions. How Can I Procure Funds To Have Cashier’s Checks Ready To Pay For The Property At The Auction?
- I Attended A Seminar This Weekend Sponsored By Another Company. They Described Terms And Conditions I Liked, But Your Website Does Not Include Them. Please Help Me With This Confusion.
Q. Can I use my free and clear property to fund non-owner occupied investments?
A. Yes! Using your paid-off properties to boost your real estate investments is a genius move. You can tap into their value through a cash-out refinance or use them as cross-collateral to secure a loan. Here’s how it works: we’ll use both the property you’re looking to invest in and your free-and-clear property as security for the loan. This allows Katmandu Funding LLC to lend up to 65% of the combined value of both properties – often enough to cover the purchase and rehab costs of your new investment. So, if you have properties that are completely paid off, be sure to mention them on your next deal – it could be the key to unlocking more investment opportunities!
Q. How Does Katmandu Funding LLC Decide How Much To Lend?
A. We’re excited to help you achieve your real estate goals. When it comes to lending, we consider the property itself, the type of transaction, and any special programs you might be a part of. Generally, we can lend up to 90% of the purchase price or 65% of the property’s value – whether that’s its current state or its potential after repairs. But here’s the best part: if you’re part of one of our membership programs or have a special purpose loan, you might qualify for even more favorable terms. Be sure to chat with one of our loan officers to explore all the options available to you – they’ll help you find the perfect fit for your needs!
Q. I need 100% financing. Can you do that?
A. Yes! Want to learn more about how to score 100% financing? Just ask one of our loan officers for the inside scoop! Here’s the exciting part: if you can offer multiple properties as security, we can cover the entire cost of the deal. And don’t worry if you don’t have a free-and-clear property yourself – consider finding a partner who does! Splitting a great profit with someone is still better than missing out on the deal altogether. Some of our savvy investors also use seller-carryback financing to achieve the same goal. Our top tip for securing 100% financing? Look for amazing deals where you can buy a property below its appraised value. It’s a winning strategy that can help you get started on your real estate journey without needing to put any money down!
Q. How can I do deals with my IRA?
A. Want to supercharge your retirement savings with real estate investing? Consider using a self-directed IRA to make it happen! This powerful tool allows you to invest in properties using your IRA funds, and the best part is that all the profits go right back into your account. To get started, you’ll need to set up a true self-directed IRA – not all IRAs are created equal, so be sure to find an administrator that offers this type of account. Once you’ve got your IRA in place, you can use it to buy properties, pay for closing costs, and even secure loans. Just remember to keep everything connected to the property within the IRA, from earnest money deposits to profit distributions. It’s a bit complex, so be sure to consult with a financial or legal advisor who can guide you through the process. You can also do some online research to learn more about self-directed IRA custodians and explore your options. With the right guidance, you can unlock the potential of real estate investing within your IRA and build a more secure financial future!
Q. I Want To Borrow Money Based On The ARV Of The Investment Property I’m Purchasing Or Own. Is This Something You Allow?
A. Yes! We love flippers! If the deal makes sense, we will help you get it done. Speak to a loan officer for more details.
Q. Why Do I Need To Buy An Appraisal When I Already Have A CMA Or Existing Appraisal?
A. At Katmandu Funding LLC, we want to make sure we have an accurate picture of the properties used as security for your loan. That’s why we require a recent, independent evaluation of each property – and by recent, we mean within the last 90 days. We’re looking for a standards-based, third-party assessment that gives us a clear understanding of the property’s value as-is. While BPOs, CMAs, or outside appraisals can be helpful, they don’t always meet our requirements. So, what’s the best way to go? We recommend using our preferred appraisal service! Our appraisers are local experts who know your market inside and out, and they work at competitive rates. Plus, they’ll do the appraisal exactly the way we need it to be done. Once the report is complete, we’ll receive a copy and you will too – so everyone’s on the same page. It’s just one more way we’re working to make your loan process as smooth and stress-free as possible!
Q. What Are Your Rates And Loan Origination Fees?
A. We’re all about keeping things straightforward and fair at Katmandu Funding LLC. Our loan decisions are based on the property itself, and we use logic to determine the level of risk involved. So, if you’ve got a property under contract, don’t hesitate to submit it to us! We’ll take a close look and give you a competitive rate based on the private money market standards. But here’s the best part: our most loyal clients get access to our very best rates. Want to join their ranks? It’s easy! Just get a property under contract, submit it to us, and let’s get started on building a long-term relationship. The more we work together, the more you’ll benefit from our most favorable terms. So why wait? Take the first step today and become one of our valued repeat clients!
Q. Is Credit The Deciding Factor In Katmandu Funding LLC’s Decision?
A. No. At Katmandu Funding LLC, we believe in keeping things simple and focused on what really matters – the property itself! That’s why our loans are asset-based, meaning we look at the value of the property as the main factor in determining your loan. We don’t get bogged down in checking your credit score, income, or debt levels. But, here’s a bonus: if you do have a great credit score, it could work in your favor and potentially qualify you for our best rates! So, while it’s not a requirement, having good credit can still give you an edge. Either way, we’re excited to work with you and help you achieve your real estate goals!
Q. How Long Does It Take To Close A Transaction From Start To Finish?
A. Let’s talk about timing! We know you’re excited to get your deal done, and we’re excited to help. Generally, it takes around 3-4 weeks from the time we receive your basic application package to close the loan. Now, here’s the thing: we can do our part in as little as 3-4 days, but it usually takes a bit longer for you and your team to gather all the necessary documents. So, a good rule of thumb is to plan for at least 30 days or more. And honestly, if you’re feeling pressured to close a deal quickly because of competition, it might be worth taking a step back and reevaluating. Remember, competition often means the deal isn’t as great as you think it is! If possible, take your time and focus on finding a deal that’s really worth your while. Of course, we know that sometimes circumstances dictate a faster closing time. If that’s the case, don’t worry – just bring us the deal and let’s chat about how we can make it work!
Q. How Much Does The Appraisal Cost?
A. Let’s talk about appraisal costs! We want to be upfront with you about what to expect. The cost of an appraisal is determined by the going rates in your local market, and it can vary depending on the type of property and its location. Generally, you can expect to pay between $300 and $600 or more for an appraisal. For a typical single-family home, condo, townhouse, or manufactured home, the cost usually falls within the range of $395 to $575. If you’re dealing with a multi-family unit, the cost might be a bit higher, typically between $550 and $645. And if the property is located in a rural area, you might see a slightly higher cost due to factors like longer drive times or limited appraiser availability. We want to make sure you have all the information you need to plan ahead and budget accordingly.
Q. I’m A Sole Proprietor. Can I Still Get A Loan?
A. Yes, if you create an LLC, a corporation, an IRA, or a trust before the close of escrow.
Q. I Am Seeing A Lot Of Good Deals On Auction Sites And At Live Auctions. How Can I Procure Funds To Have Cashier’s Checks Ready To Pay For The Property At The Auction?
A. We’re excited to help you fund your real estate ventures, but we want to make sure you understand how our process works. Our funding is based on properties you already own or have under contract, so we can’t provide cash upfront for auctions that require immediate payment. Since our loans are asset-based, we need to have a lien on a property you own as security. Now, if you’re looking to get funding before you have a property under contract, there are a couple of ways to make it happen. One option is to use another property you own that’s free and clear, and take out a loan against it. This way, you can access the funds you need before closing on the new property. Another option is to work with a professional auction bidder who can provide the bidding presence and purchase cash for a fee (usually around $5-10 thousand or a percentage of the sale price). Then, once the sale is finalized and escrow closes, you can pay the remaining balance. We’re happy to help guide you through this process and find the best solution for your needs!
Q. I Attended A Seminar This Weekend Sponsored By Another Company. They Described Terms And Conditions I Liked, But Your Website Does Not Include Them. Please Help Me With This Confusion.
A. We’re not perfect, and sometimes mistakes can happen. We work closely with other companies to make sure our information is accurate, but occasionally misunderstandings can occur. It’s possible that someone may have shared incorrect information about our lending guidelines. As a trusted lender in the industry, we’ve had the privilege of working with many real estate investment experts who have chosen us as their go-to lending source. We’ve even trained their trainers, who then go on to train others. With so many people involved, it’s not surprising that small discrepancies can creep in, even with the best of intentions. But don’t worry, we’re confident that they probably got most of the information right! If you’ve encountered any inconsistencies, please encourage the person who shared the information to reach out to us directly, or provide us with their name so we can clarify any details and make sure they have the most up-to-date information to share with their students in the future.