How Does GreenStreet Decide How Much To Lend?

Our decision is based on the property, the type of transaction, and your membership in any of our special
programs. For most transactions we will lend up to 90% of the purchase price or 65% of the as-is or
after-repair appraised value, whichever is less. Ask a loan officer about the special terms available through
our membership programs and special purpose loans.

Can I Use My Free And Clear Property To Fund Future Non-Owner-Occupied Investments?

Yes! It may be used as cross-collateral or used for a cash-out refinance. That is a great strategy! If you have
properties that are completely paid for with no liens against them, we can do a cash-out refinance to provide
funds for other non-owner-occupied investments. You can also use them as cross-collateral for your real estate
investing. We use both your subject property and your free and clear property as security for the loan. In
doing that, we can lend up to 65% of the as-is combined value of the two properties. That is often enough to
purchase your subject property and rehab it. If you have free and clear properties, mention that on your next
deal.

I Need 100% Financing. Can You Do That?

Yes! Ask a loan officer for more details. If you provide more than one property as security (as described
above in regard to cross-collateral) we can provide 100% financing. If you don’t have free and clear property,
find a partner that does! Sharing half of a nice profit beats not being able to do the deal! Many of our
investors also use seller-carryback to do the same thing. We recommend finding deals and purchasing
property below appraised value as the best way to secure 100% financing.

Where Can I Find A Good Deal?

Look for people that have a need to sell and get to them before your competitors do. The simple answer is:
wherever you have the least competition. The harder they are to find, the less competition you will have, and
the better your chances for a good price. It requires work, but it is work that can end in a deal with profit as
opposed to work that spins wheels but never gets a profitable deal. For instance: talk to probate or divorce
attorneys, find ugly houses, contact out-of-state owners, etc. Be creative.

Will You Lend For Both The Purchase And The Repairs?

Yes, for the right deals. If the numbers work and we think the deal will be profitable, we will loan on the
After Repair Value (ARV). We recommend you have solid experience doing or managing such repair work.
You will need to supply licensed contractor bids as well as meet certain other requirements. Bring us the deal
and let’s discuss it.

How Can I Do Deals With My IRA?

By using a true self-directed IRA and making all legal payments from it and depositing all complying profits
into it. You should seek legal and financial advice first. You must have a true self-directed IRA. There are
many IRA administrators that offer such accounts. Then you buy the property in the name of the IRA,
furnish the earnest money from the IRA, apply for the loan in the name of the IRA, pay all costs from the
IRA, and put all the profit back into the IRA. This is a topic that requires much more detail than we have
room for here. Please contact your legal or financial advisor for the details. Also search online for
self-directed IRA custodians to learn more about your options.

I Want To Borrow Money Based On The ARV Of The Investment Property I’m Purchasing Or Own. Is This Something You Allow?

Yes! We love flippers! If the deal makes sense, we will help you get it done. Speak to a loan officer for more
details.

Why Do I Need To Buy An Appraisal When I Already Have A CMA or Existing Appraisal?

GreenStreet requires a recent (less than 90 days old), independent, standards-based, third party, as-is
evaluation of every property used as security. BPOs, CMAs, or outside appraisals do not generally satisfy all
those requirements. Your best bet: Go with ours. They are performed by local appraisers in your market,
working at competitive rates, and doing the appraisal the way we need it to be done. The appraisal report will
come to us and you will receive a copy.

Why Won’t You Lend On Owner-Occupied Properties?

Legal and regulatory reasons. Our current business model is to provide bridge loans to real estate investors
for terms ranging from three to 24 months. As a result, it is not cost-effective for us to implement the complex
and restrictive processes and rules required by regulatory agencies to do business with owner-occupants.

Is Credit The Deciding Factor In Cogo’s Decision?

No. Our loans are asset-based. We base our loans on the value of the asset, not on your credit score, income,
or the size of your debts. However, a high credit score can potentially get you our better rates.

How Long Does It Take To Close A Transaction From Start To Finish?

Three to four days after we receive all required documentation, which can often take three to four weeks.
Though we can do it faster, a good estimate would be three to four weeks after we receive the basic
application package. The key factor is the amount of time it takes you and your team to supply all the
supporting documentation. We can do our part in 3-4 days, but first-time borrowers rarely get us the
documents quickly enough and complete enough to meet that. Go for 30 days or more whenever you can.
Remember: if time to close is a factor, you probably have competition. Competition does not usually translate
into a good deal. Forget such a deal and go find a good one! (Admittedly, sometimes other factors dictate
closing time. If that’s the case, bring us the deal and let’s discuss it!).

How Much Does The Appraisal Cost?

Rates are determined by the going rates for appraisals in your market. This could vary between $300 and
$600 (or more). The appraisal price also depends on the property type and location. A typical single-family
residence, condo, townhouse, or manufactured home may cost between $395 and $575. Multi-family units
may cost between $550 and $645. If the property is in a rural area, it may cost more because of added drive
time or appraiser availability.

I’m A Sole Proprietor. Can I Still Get A Loan?

Yes, if you create an LLC, a corporation, an IRA, or a trust before the close of escrow.

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?

Our funding is solely based on properties you already control via ownership or contract. We cannot provide
cash in advance for auctions that require immediate payment. Since all loans are asset-based, we must have a
lien as security on property you own. The primary way to procure funding prior to getting a property under
contract is to have another property that is free and clear and take out a loan against it. Alternatively, you can find a professional auction bidder who will supply the bidding presence and the purchase cash in
exchange for a fee (often $5-10 thousand or a percentage) with the rest of the funds paid later at close of
escrow.

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.

We are aware that has happened on occasion. We work closely with other companies to assure accurate
descriptions, but misunderstandings sometimes occur. That is possible. We have seen others who are not a
part of our company describe a specific detail that is inconsistent with our lending guidelines. As one of the
nation’s most reliable lenders that can be counted on to have the funds to do their students’ deals, many real
estate investment gurus have chosen us as their preferred lending source. After we train their trainers, they
train someone else, who trains someone else. It is not surprising that slight discrepancies may creep in, even
with the best intentions. Chances are pretty good they got most of it right. Please ask them to contact us, or
provide us their name so we can clarify the details they share with future students.