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:
- 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.
- 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.
- A copy of a commitment to insure from your insurance provider goes here.
- 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.
- 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.
Now, you've got a product you can SELL. Go out and approach your hard money lender and see if your results are different!