Hard Money Lending Statement of Work

[Justin M. Pillion]

Hi BP Community, 

I am new to REI. I have begun by creating listening to 1000+ hours of bigger pockets podcasts, creating an LLC, joining a REI association, scoping properties, and talking with many hard money lenders. One of the roadblocks I am running into in my new beginnings is not having someone available to prepare a statement of work that I can provide to the hard money lenders to underwrite the flix and flip loan. I plan on sub-contracting out the work my self. I am not a licensed GC nor would I be qualified to give an appropriate SOW estimate. I can ball park things, but I do not think HM lenders would accept this given my zero experience in flipping. What can I do to solve this problem? Are there hardmoney lenders that anyone knows is accepting of a general statement of work?

Also, I have been loosing deals due to not being able to find a contractor in time to do a walkthrough with me before I can make an offer. What are some ways to solve this problem? Can I put a small escrow payment down to get under contract, then look for a contractor to make the SOW, then submit for HM lending? What if I can't find someone in time? 

Love to hear your thoughts and suggestions. 

Justin

[Chris Seveney]

Quote from @Justin M. Pillion:

Hi BP Community, 

I am new to REI. I have begun by creating listening to 1000+ hours of bigger pockets podcasts, creating an LLC, joining a REI association, scoping properties, and talking with many hard money lenders. One of the roadblocks I am running into in my new beginnings is not having someone available to prepare a statement of work that I can provide to the hard money lenders to underwrite the flix and flip loan. I plan on sub-contracting out the work my self. I am not a licensed GC nor would I be qualified to give an appropriate SOW estimate. I can ball park things, but I do not think HM lenders would accept this given my zero experience in flipping. What can I do to solve this problem? Are there hardmoney lenders that anyone knows is accepting of a general statement of work?

Also, I have been loosing deals due to not being able to find a contractor in time to do a walkthrough with me before I can make an offer. What are some ways to solve this problem? Can I put a small escrow payment down to get under contract, then look for a contractor to make the SOW, then submit for HM lending? What if I can't find someone in time? 

Love to hear your thoughts and suggestions. 

Justin

 I recommend getting quotes from the subcontractors you plan to use  - that will suffice.