Why Choose Crowdcopia?

At Crowdcopia, we do all we can to ensure a successful project for our clients. We know that getting into real estate investing can be daunting for first-time investors. Our knowledgeable team provides concierge-level, one-on-one support for the entire lending and construction process.

We make lending easy with no application fees & personalized support!

We want our clients to be successful so they can continue to grow their business!

Before Submitting an Application

Below are some key steps to take before submitting your Crowdcopia loan application. The more organized  your project is before you come to us for funding, the smoother & more successful it will be.

1. Find a property
2. Research the investment area to determine potential return on investment (ROI)
3. Look for comparable properties that have recently sold in the area so that you have an idea of how much it will be worth after the renovation (also known as the ARV)
4. Determine your construction crew & complete a Crowdcopia Construction Budget & Scope of Work  so you have a sense of projected scope & costs
5. Review the purchase price, construction budget, & anticipated ARV to see if the deal makes sense
6. Submit an offer to the seller. Be sure to have your purchasing entity listed as the buyer

We are happy to provide you with a Proof of Funds letter for the seller. Please email info@crowdcopia.com with the following information and we will send you the letter within an hour!

• Property address
• Name of purchasing entity
• Your first & last name

Beginning the Loan Application Process

Once you have completed the research for your project and are confident that the project makes sense for you financially, you are ready to submit your Crowdcopia loan application !

Below are the first steps to submitting your Crowdcopia loan application:

1. Collect the following documents:
   • Agreement of Sale
   • Construction Budget
   • Scope of Work

3. Apply online or email the above documents with the following information to info@crowdcopia.com:
   • Property Address
   • Borrower Name (also list broker or co-borrower name, if applicable)
   • Phone Number
   • Purchase Price
   • Construction Budget Total
   • Estimated ARV
   • Desired Loan Term (6 months / 9 months / 12 months)
4. Appraisal is paid for and scheduled
5. Submit Underwriting Documents to your loan representative
6. Get a property insurance quote & send to your loan representative

Current Loan Terms & Rates

Crowdcopia is currently lending at a 65% Loan to Value of the appraised value of the property (try our Loan Calculator here!). So if the appraisal comes back at $200,000, the maximum loan is $130,000.

Below are our current loan terms & origination fee points due at closing for Crowdcopia loans. Points are due at closing on the HUD or Alta and calculated as a percentage of the total loan amount.

*There is a minimum $2,500 origination fee for all loans

What Happens After the Appraisal is Completed?

Appraisals are the best way to understand how much the project you are looking to undertake could be worth, post-construction. This post-construction value is called the “After Renovation Value” or ARV, and helps determine the total possible loan. Some key components of the appraisal valuation are the property’s square footage, comparable property sales in the area, and the extent of the renovation listed on the Scope of Work  document you submit.

Once we receive the appraisal report, we are able to generate loan numbers that day. Crowdcopia is currently lending at a 65% Loan to Value (LTV) of the After Renovation Value (ARV) or 100% of the purchase price and construction budget, whichever is less.

Once loan numbers are agreed upon, we will send you pre-closing documents to be electronically signed. These documents outline the loan terms & monthly interest due. At this point, we also send our financing information to the title company that will be handling the closing.

The title company will be working to ensure that the property’s title report is clear of any issues or liens before closing. Results from the title search will be relayed to everyone involved prior to closing, and a preliminary document showing the financing information listed for both seller & buyer.

Get a sense of estimated closing costs here!

How Do Construction Draw Disbursements Work?

Unlike many of our competitors, Crowdcopia does not charge for inspections. We try to make the inspection process as fast and easy as possible so you can pay your contractors and keep the project moving forward.

When you are ready to be paid for the work that you and your construction team have 100% completed, email our construction team [ Dan@crowdcopia.com and Zach@crowdcopia.com ] to schedule a draw inspection. Your email should include the following; property address, line items to be inspected, and their budget amount.

Once the construction team has confirmed that the work for the draw request is 100% complete, we will deposit the budgeted amount into the account on file.

Be sure to reference the final budget that will be sent to you with the appraisal report and loan numbers, as these are the budgeted amounts for each line item.

I’m Done My Project, Now What?

There are two paths that most real estate investors take after completing their project – sell or refinance. We suggest having an exit strategy before you begin a project. This will help you smoothly transition out of our loan and move on to your next investment property!

Click here to learn more about selling & refinancing!