Prospectus for private money partners

Prospectus for private money partners

Wholesaler · New Orleans, LA · Member since 2011 · 54 posts · 3 votes

I've got a few money people interested in the possibility of partnering with me. They would like to see some type of "write up".

One investor I know does a prospectus with photos of the houses they have completed, all spiral bound. Really nice.

What do you do? What do you give out to potential lenders? How do you spell out the potential benefits to them and the return on their money?

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  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
    15y

    Here is what I generally provide for each deal:

    - Basic property/deal info (address, purchase price, closing date, details of property, details of area, etc)
    - Financial analysis (purchase price, rehab estimate, fixed cost estimate, ARV estimate, profit estimate)
    - Breakdown of rehab costs
    - Copy of executed contract
    - Copy of the MLS listing page for the property (if it's on the MLS)
    - Copy of tax records for property (and link to it online)
    - List of comps from the MLS (including the MLS pages for each)
    - If I've done a flip in that area recently on a similar house, I'll provide an appraisal from the other project I did

    Also, since I document all my projects very specifically on my blog, I'll provide a list of projects from my blog that are similar to this one, in a similar area, are comps, etc.

  • Mike HurneyPro Member
    Real Estate Investor · Boston, MA · Member since 2009 · 2k+ posts · 545 votes
    13y

    @J Scott, that's what I would expect.

    It still (almost) embarrasses me when I get all the information I need to do a conventional loan for someone,

    that same person will later ask me to recommend a Private Lender for a Rehab/Flip and only have a couple of sentences scribbled on a cocktail napkin to describe their Project, expecting 100% purchase and fix-up money by the weekend.

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