Building your "bank book"

I've heard several people speak about the importance of maintaining a bank book, which from my understanding, is just snap shot of your overall financial position and investment goals. I guess you could say it's a hybrid between a business plan and your company's financials...

IMO, I think this is especially important when your first starting off or soliciting yourself to new lenders or business partners. I would like to hear what everyone else thinks about this? Or even better yet, what makes up YOUR bank book?

I like to keep the following:

1. A mission statement
2. My professional team summary (CPA, realtor etc.)
3. Financials (personal and business)
4. Most current credit report
5. 3 years of tax returns

Laura Al-Amery

Real Estate Consultant · St Louis, Missouri

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Jun 27 '11, 01:14 PM

Yes, it is definitely important to keep an updated real estate business plan/loan package.
With the items mentioned above, I include specific itmes for the property in question, for which I am applying to get a loan.

These include:

Cover Letter
A. Photographs
B. Memorandum (Executive Summary)
C. The Borrower (Description of you and your company)
D. The Collateral (The Property in question)
E. The Underwriting (Financial soundness of your plan)
F. Recommendation (Summary)

Todd Brittingham

Real Estate Investor · White Lake, Michigan

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Jun 28 '11, 04:16 AM

You should also consider adding information about yourself and your background. This can include:

1. Your Education
2. Your job history
3. Your experience as a real estate investor
4. Books you've read
5. Seminars/classes you've attended

Essentially you want to give the bank a complete look at you both financially and as a person.

Patrick Howell

· 42020, Kentucky

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Jun 28 '11, 09:02 AM

Thanks Todd and Laura. Good advice!

Will Barnard

Rehabber · Santa Clarita, California

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Jun 28 '11, 09:11 AM

Originally posted by Todd Brittingham

You should also consider adding information about yourself and your background. This can include:

1. Your Education
2. Your job history
3. Your experience as a real estate investor
4. Books you've read
5. Seminars/classes you've attended

#3 should always include any previous closed transactions you have completed, complete with photos and the financial breadown of each closed deal.

Will Barnard, Barnard Enterprises, Inc.
E-Mail: info@barnardenterprises.com
Website: http://www.barnardenterprises.com
info@barnardenterprises.com

Greg B.

Real Estate Investor · Godley, Texas

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Jun 28 '11, 10:00 AM

Good points made here. I also did a word doc along this subject and put is on the file share.

Get Your Banker to Say Yes

Edited: 06/29/2011 at 12:51PM by Administrator : Fixed link!

E-Mail: IBuy@ChargerProperties.com
Website: http://ibuyjoco.com/
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Joshua Dorkin

BiggerPockets Founder · Denver, Colorado

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Jun 29 '11, 12:51 PM

I got you covered, Greg . . . link fixed.

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Aaron Mazzrillo

Wholesaler · Corona, California

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Jun 29 '11, 01:50 PM

I use Quickbooks and have 3 separate accounts; my personal, my corp, and my IRAs. My goals are in writing and go up on the wall.
As a real estate investor, I don't see any reason to list out my education. Actually, I wish I didn't go to college. It was a complete waste of time and money. I couldn't keep a list of all the books I've read and seminars I've been to. Both would be way to long.

If you are just starting out, you should keep a list of the books you HAVEN'T read. You should also write your goals down and then put them somewhere so you can see them every day.

Some of the suggestions above sound like they want you to write a resume and apply for a job or go out and get a bank loan.

Clay Zaccaglini

· Carlsbad, CA

14 posts
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Jun 29 '11, 02:24 PM

I work in real estate development mostly building subdivisions, and our last 2 construction loans in 2007 for 9.5M and 24M from Indymac Bank before they failed only required our financial statements and the owners balance sheet. That is all they cared about before the Corporation and owner signed all the docs along with personal guarantees. I have never been asked for anything else. That is just my experience with some really tough bankers. Now they want the shirt off your back.

I like Aaron's comments about having different financials for different reasons. The other stuff is great for finding a job (except the financials although employers do credit checks).

Todd Brittingham

Real Estate Investor · White Lake, Michigan

121 posts
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Jun 29 '11, 02:50 PM

@Aaron,

I completely disagree about your statements on education. While you may not put a lot of weight on it, it represents something that sets you apart as a person, and gives the lender a better description of you as a person. It takes discipline to follow through and obtain a degree. While you may be regretting your choice to spend a lot of money on a degree that perhaps you are not using, it still represents an accomplishment that took a great deal of dedication on your part to achieve. If nothing else, a degree adds to your character...