CoreVest 2024 Q3 Earnings Breakdown
Inside CoreVest's Q3 2024 Performance: Geographic Insights, Loan Portfolio Highlights, and Exclusive Data Access
In this data-driven analysis, we dive deep into CoreVest’s recent earnings report and financial performance. Our comprehensive report includes:
A breakdown of where CoreVest has been most active, including a heat map of all lending activity
Highlights of recent portfolio loans completed by the company
Exclusive access to a detailed spreadsheet of CoreVest's Q3 2024 originations, including loan amounts, property details, and borrower information
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Our full analysis includes breakdowns by product type, detailed information about where CoreVest has been most active, and highlighted transaction details.
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Executive Summary
CoreVest, a leading specialty finance company, provides loans to residential real estate investors and continues to play a significant role in the market. Founded in 2014 and headquartered in Irvine, California, CoreVest was acquired by Redwood Trust in 2019, a real estate investment trust specializing in mortgage banking. The company offers various loan products for investors interested in purchasing, renovating, or refinancing single-family and multifamily properties.
In Q3 2024, CoreVest maintained steady origination volume, comparable to the previous quarter, which marked the largest volume since Q2 2022. Bridge loans comprised 65% of Q3 volume, while term loans accounted for 35%, showing a slight shift from the Q2 2024 mix of 53% bridge and 47% term loans. CoreVest has been particularly active in Los Angeles, Dallas, Phoenix, and Portland, based on recent lending activity.
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Introduction
CoreVest is a leading specialty finance company that provides loans to residential real estate investors. It was founded in 2014 and is headquartered in Irvine, California. CoreVest offers a variety of loan products for investors who are looking to purchase, renovate, or refinance single-family rental properties, multifamily properties, and portfolios of rental properties.
The company was acquired by Redwood Trust in October 2019 and continues to operate as a distinct business line, leveraging Redwood's resources to expand its offerings and reach more investors in the single-family rental and multifamily markets. Product offerings include long-term rental loans, bridge loans, multifamily loans, build-to-rent loans, and single-asset loans. CoreVest lends in most states across the country and competes with other nationwide lenders like Kiavi, LendingOne, and Lima One. While CoreVest funds bridge loans, CoreVest has historically had a heavy focus on SFR portfolio loans which represent roughly half of their origination volume.
Data Overview
At SFR Analytics, we leverage nationwide deed and assessor data to track the single-family investment market. To generate this analysis, we have:
Identified and reconciled the entities that CoreVest originates loans under and analyzed their transactions
Analyzed CoreVest’s public filings
Analysis & Results
Origination Volume & Mix
Q3 2024 volume was roughly flat quarter-over-quarter, matching the output of Q2 which was the largest quarter for term loan originations since rates started rising in Q2 2022. Mix shifted back closer towards previous quarters, with bridge representing 65% of volume vs 35% term.
Origination Volume
Although origination volume remains below early 2022 levels, Q3 2024 was strong for CoreVest, nearly equaling the surge in Q2 2024.
Origination Mix
CoreVest’s mix shifted back towards bridge loans.
Most Active Geographies
By loan origination volume, CoreVest has been most active in Los Angeles and
Dallas, followed by Phoenix and Portland.
Geographic Distribution
CoreVest has a strong presence across the country serving investors in almost all major metros. CoreVest has one of the largest geographic footprints across all private lenders.
Gross Margins on CoreVest Loans
Investors using CoreVest bridge loans have generally achieved strong positive gross margins (sale price minus purchase price), with a median of $200,000. However, larger projects will incur significant labor and material costs that impact net profit.
Deal Spotlight
CoreVest’s largest market was LA where their deals consisted of mostly single family bridge loans along with a few smaller multifamily deals. Their median bridge loan in the LA metro area was $1,100,000. Below are three deals in the LA metro area that they funded in Q3.
CoreVest’s top three markets by origination count were LA, Portland, and Seattle—all markets in which Riverbend (whom CoreVest acquired) was particularly strong.
2024 Q3 Loan Originations
Below, paid members will get access to a list of CoreVest’s 2024 Q3 loans.