How to Get a Hard Money Loan
|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 and include the following information into these sections:
Now, you've got a product you can SELL. Go out and approach your hard money lender and see if your results are different!
- 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, 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.
- Ideally an appraisal, but at least a real estate broker BPO (real estate broker's estimated value of the property) should go here.
- Insurance Binder
- A copy of a commitment to insure from your insurance provider goes here.
- Title Commitment
- A copy of the title commitment should go here.
- Detailed photos in and outside of the property, IN COLOR.
- Have a professional inspection done of the property and put this report here.
- Repair Estimate
- A repair estimate from a LICENSED general contract (copy of his license, too) should go here.
- Insert a spreadsheet of the breakdown of the numbers. Include your purchase costs, closing costs, holding costs, repairs, realtor fees, etc.
- A diagram of the outline of your construction project should go here.
|William Bronchick, CEO of Legalwiz Publications, is a Nationally-known attorney, author, entrepreneur and speaker. Mr. Bronchick has been practicing law and real estate since 1990, having been involved in over 600 transactions. He has appeared as a guest on numerous radio and television talk shows including CNBC Power Lunch. He has been featured in Who's Who in American Business, Money Magazine, the Los Angeles Times and the Denver Business Journal. William Bronchick has served as President of the Colorado Association of Real Estate Investors since 1996.|
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