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The Right Steps to Getting a Hard Money Loan
by William Bronchick, Esq.
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.
Start by getting a binder from Office Depot, with a set of tabs you can print on. Mark the tabs on these sections:
Here’s what you need in each section:
About Me. This section should contain an 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, then at least put a list of books and seminars you’ve been through. A list of references would help, too.
Purchase Contract. A copy of the purchase contract with addendums should go here.
Appraisal. Ideally an appraisal, but at least a real estate broker BPO (broker’s price opinion) should go here.
Insurance Binder. A copy of a commitment from your insurance provider goes here. It shows that you will be properly insured.
Title Commitment. A copy of the title commitment should go here.
Photos. Detailed photos in and outside of the property, IN COLOR. Do a great job with great photos!
Inspection. Have a professional inspection done on the property and put his report here.
Repair Estimate. A repair estimate from a LICENSED general contract (copy of his license, too) should go here.
Numbers. Insert a spreadsheet of the breakdown of the numbers. Your purchase costs, closing costs, holding costs, repairs, realtor fees, etc.
Timeline. A diagram of the outline of your construction project should go here.
Now, you’ve got a product you can SELL. Go out and approach your hard money lender and see if your results are different!
Do you have a little extra cash and are between deals? Did you know that you can also make good money by becoming a hard money lender? Click here to see how!
Free eBook on how to wholesale properties! Click Here!
