What should you bring to a hard money lender

Question

What should I bring to a hard money lender in order to close a deal? I know most of the main things like ARV, comps, and scope of work. Does anybody have an example they could share? Or possibly a template that you go off of? Also what tools should I be utilizing that bigger pockets has to offer with the pro membership that that would help me with this.

Mark Munson · Answer

These templates should cover everything you need to supply to get a term sheet:Short Term Financing Quote:Company Name (LLC/Corp):Individual Name:Property Address:Purchase Price (if applicable):Current Value:Payoff Amount (if a refinance):Rehab Budget (if applicable):After Repaired Value (if applicable):Estimated Liquid Cash Reserves:Estimated Credit Score:Fix & Flip Projects Completed (Last 24 Months):Long Term Financing Quote:Company Name (LLC/Corp):Individual Name:Property Address:Transaction Type: Purchase or RefinanceOwned Less than 4 months? Y or N?Purchase Price:Current Value:Payoff Amount (if a refinance):Estimated Liquid Cash Reserves:Estimated Credit Score:Number of Rental Properties Owned:

Fix & Flip Projects Completed (Last 24 Months):Property Leased (Y/N):Lease Amount:Lease Term Length:Annual Taxes:Annual Insurance Amount:Monthly HOA Fee:Loan Amount Requested:

Scott E. · Answer

This forum is all about helping each other out, but you really should be calling hard money lenders with this question vs posting in here in the forum.

I have several hard money and private equity lenders I use on my deals, and each one of them has different requests and requirements. They also all have different terms (rate, points, balloon, appraisal vs no appraisal, etc)

Of course you will need to offer some sort of a business plan showing purchase price, detailed remodel estimate, and projected resale value with comps. But beyond that, each HML will have different requirements.

Eliott Elias · Answer

Bring them the deal. The good ones will run their own comps and see if your deal has any potential. Bring them your purchase price, rehab estimate, ARV, hold time, and they will check if that is realistic.

What should you bring to a hard money lender

Most Popular Reply