So, you just got that great bank-owned property under contract and now you need a loan to buy, fix, and flip. You went to three hard money lenders, and they turned you down. Why? Because you STINK at selling your deal.
That’s right, you need to learn how to SELL your deal to a lender.
You start by getting a binder from the office supply store with a set of tabs you can print on. Here’s what you need in each tabbed section:
About Me. This section should contain a FNMA 1003 loan application, a copy of your credit report, a copy of your driver’s license, and a brief resume of your experience. If you have no experience, at least put a list of books and seminars you’ve taken. A list of references would help, too.
Purchase Contract. A copy of the purchase contract with addenda goes here.
Appraisal. Ideally an appraisal, but at least a real estate broker BPO (broker’s price opinion) goes here.
Insurance Binder. A copy of a commitment to insure from your insurance provider goes here.
Title Commitment. A copy of the title commitment goes here.
Photos. Detailed, color photos inside and outside of the property go here.
Inspection. Have a professional inspection done of the property and put the report here.
Repair estimate. A repair estimate from a licensed general contractor and a copy of his license go here.
Numbers. Insert a spreadsheet of the breakdown of the numbers: your purchase costs, closing costs, holding costs, repairs, realtor fees, etc.
Timeline. An outline of your construction project goes here.
Now, you’ve got a product you can SELL. Go out and approach hard money lenders and see if you don’t get much better results!