Awhile ago @Brandon Turner mentioned he put together a nice and concise packet to give to banks when he was looking for financing. To be honest, I dismissed the need for this for my company as I wasn't a "big fish". Fast forward a year and a half from starting this REI adventure and I have an epiphany: finding deals and money is what holds back your growth. HAHA. I know we have all heard it a million times but I guess I never thought it affected me. Well, I WAS WRONG...BIG TIME.
I put together a nice little presentation with all my documents, rent rolls, before and after pics and the nice little resume with a picture of my family to give to lenders (don't forget those tax returns either), took it to FedEx Kinkos and had it bound for like $6 and BAM...funding. You really separate yourself from the crowd and can show a snapshot of your company and direction with this simple little hack. It has allowed me to get 6 figure lines of credit and financing to grow my business. We have gone from 2 units at the beginning of the year to closing on units 7 & 8 this week.
I know this is stating the obvious to many but if you have even thought about growing your business to that next level, I can't encourage you enough to put together one of these packets. Its a game changer. Happy investing!
Nice update, Mike. Do you have an outline that we can use? Thanks!
Rock on @Mike Webb ! I love to hear this :)
what are the terms on the credit line?
@Mark Bookhagen - here is the basic layout of what we put together.
- Section 1: Resume
- Section 2: Business Plan
- Section 3: Business Entity Paperwork
- Articles of Organization
- Operating Agreement
- IRS Form SS-4
- SDAT Good Standing
- Copy of Drivers license
- Section 4: Personal Financial StatementSection 5: Rent Roll
- Section 6: Rental Property Portfolio Inventory
- Section 7: Past and Present Project
- @George P. - it is an unsecured line right around 5%
Sorry the formatting on the above post is discombobulated.
Thanks @Mike Webb
Great job Mike. We do the same thing every time we talk to portfolio lenders. Even in the beginning when we really had no idea what we were doing we did this and it blew bankers away. It just says your serious, you took the time to put this together they expect you'll take the same approach with their $.
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