Foundation CREF is majority owned by a leading alternative asset manager with thousands of defaulted single-family loans and REO properties across the US. Through this unique affiliation and partnerships with other asset managers and loan servicers, Foundation offers clients early access to a stream of pre-foreclosure and pre-listing REO properties and combines them with flexible bridge or permanent rental loans for maximum efficiency.
We currently lend in 40 states: AL, AR, CA, CO, CT, DE, DC, FL, GA, HI, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MS, MO, MT, NE, NH, NJ, NM, NY, NC, OH, OK, PA, RI, SC, TN, TX, UT, VA, WA, WI, and WY. We are continually expanding our footprint so check back often if you do not see your state.
We lend up to 85% of purchase price and up to 100% of rehab costs provided the After Repaired Value ("ARV") is 70% or less.
Yes, we require borrowers to invest some cash at closing and to demonstrate that they have sufficient liquidity to pay interest expense, real estate taxes, and to cover potential cost overruns on the rehab project.
8% to 12% fixed depending upon location, property type, LTV, as well as the investor's experience and overall credit profile.
Presently, $50,000 to $2,000,000
We consider closing expenses to be part of your overall project cost and we will finance up to 85% of those settlement costs but you will need to have some cash to close your loan.
For fix and flip and fix to rent loans, we offer a 12-month loan with interest only payments and pre-payable at any time. To learn more, explore our loan programs.
We do allow for individual borrowers - but there are state specific guidelines. The preference for business purposes is to lend to corporate entity borrowers, usually an LLC, corporation or limited partnership. We will not lend to non-profits.
Yes, on most deals. We will consider non-recourse loans with standard bad boy carve outs on a case-by-case basis provided the corporate entity guaranteeing the loan has sufficient liquidity and net worth.
We only make business-purpose loans to investors on non-owner-occupied properties. We will not lend on a primary residence or second home.
We are always in the senior position secured by a 1st lien.
We will not permit subordinate debt or 2nd liens.
Yes, we will finance ground up construction with experienced contractors and builders.
Unlike many fix and flip lenders, Foundation only charges interest on the outstanding loan balance. We won't charge interest on the unfunded commitment until drawn down, saving you money.
As with any successful lending relationship, repeat customers will get the best terms available.
Yes, provided you are not occupying the house and have no intention of doing so. We refinance many investors who pay all cash at foreclosure auctions and then use Foundation loans to pull the majority of their cash out to reinvest into more properties.
No, we lend up to 85% of purchase price plus settlement costs and up to 100% of rehab costs provided the after repaired value (ARV) is 75% or less.
We lend on single-family homes, townhomes, condos, and multi-family apartments. We can also finance mixed use commercial properties with a substantial residential component.
We will not finance owner-occupied homes, co-ops, log homes, mobile homes, manufactured houses, and raw land.
We will lend to foreign nationals with the necessary OFAC documentation.
We have no minimum condition requirements, the messier the better. A quality rehab is where you unlock value in your property!
We strive to close all loans within 10 business days of your initial inquiry but we can close in 5 business days if all the paperwork is in order. In special cases, we have closed loans in as little as 3 business days to meet a firm closing deadline for a repeat customer, but that is more an exception than the norm.
You do not need a great credit score (FICO) to borrow from Foundation; however, we do review the credit profile of all loan Sponsors/Principals and will not lend to you if you are currently delinquent on any loans or have filed bankruptcy in the last three years.
At least one Sponsor/Principal in the transaction will need to have a credit score (FICO) of 600 or better.
Experience is beneficial and it will enhance your loan terms but we understand that everyone has to start sometime. We lend to first time investors.
We focus most on whether you have enough cash for the down payment and to carry the investment through completion (to make interest payments and cover operating expenses). We can underwrite a portion of your income to meet that cash requirement, but we do not have a minimum debt to income ratio.
There are several ways to get started. The easiest and most efficient is for you to fill out our pre-qualification form or enter a basic deal summary online. We will generally respond to your inquiry within a few hours, and no longer than 24 hours. When we receive your inquiry, one of our team members will review the information and then contact you to discuss your background and the transaction over the phone. We will provide basic terms for your consideration and if you like what you hear, we will follow up with a term sheet that outlines the entire structure. If you have an immediate need and prefer to talk to a Foundation rep directly, call or email us your information at any time flagging it as "URGENT" and we'll respond immediately.
We require no initial paperwork to pre-qualify you, just your number of past investments and estimated credit score. If you want to get a head start you can submit a loan application and we will complete our initial background checks to be ready for your first loan. If you already have a deal in tow, we can size your loan with just with a few pieces of additional information - purchase price, estimated rehab cost, projected after-repaired value (ARV) and property location. All of this can be handled over phone or email. If the deal sounds good, we will issue you a loan term sheet and begin documentation.
We will not ask for any money until you have a term sheet outlining the loan structure and all costs in detail.
For new customers, we require a loan application with written authorization to run a credit report and background check. For every loan, we require a rehab budget, property appraisal (generally a 4 day turnaround), your two most recent bank statements (proof of funds) and copies of leases, if applicable.
Usually within 24 hours of a complete submission package.
Yes, we value relationships and meet with clients whenever possible but it is not a requirement to fund your loan.
Yes, we lend our own funds and have complete control over all credit decisions.
Absolutely! We work closely with real estate professionals from many disciplines to provide financing to their clients. They are a major source of new loans and we protect the relationship they have with their clients.
We pay competitive fees for any referral that results in a closed loan provided it is permitted under state laws. It will be your responsibility to determine whether you can accept a referral or finder fee.
When Foundation closes a loan with one of your clients, we protect your fee in the loan term sheet and on the settlement statement at closing. You will be paid via check out of the escrow.
Yes, we have multiple staff members who are fluent in Spanish as well as individuals who speak Arabic, Greek, Vietnamese, German, Russian and Portuguese at varying levels of fluency. If one of these is not your primary language, call us and we will find a way to communicate with you to get your deal done.