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CEI 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 your find the "sweetest" deal possible, which can give you the best chance at making money in your real estate transactions, while keeping your investment safe

Here at CEI Funding, we are only interested in funding projects that will give you the best opportunity to be successful. That's why our criteria is centered around 5 factors.

Residential Property Type 1-4 Units

1

PROPERTY TYPE

Residential

1-4 Units

NON-OWNER OCCUPIED

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2

sALE

PRICE

Ultimate sale price does not exceed FHA maximum in your state

Family Real Estate

3

Size of the house

2,800 sq ft maximum

4

property Features

5 bedroom / 3 bathroom maximum

5

size of the propery

1/2 acre maximum

*Higher  credit scores (680+), and down payment (20% or more) trumps 3, 4, and 5

WHY THIS 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.

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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.

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Why price your home at or below FHA requirements?

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

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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.

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Why no more 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.

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