Meeting with a Private Lender tomorrow......preparing

4 Replies

I have lunch scheduled with a private lender tomorrow.  I've prepared a portfolio showing the financials of flips and rentals.  

To date, I've used some private lenders, but they've been people I know.

I'm comfortable with the portfolio I've prepared.  What I'm going back and forth on is whether or not I should come with terms I'm looking for or wait to see what he has in mind.


Is there anything else you'd be prepared with?

I think as long as your financials show you made a profit, and your bank statements can back it up you should be ok.

Joe Gore

Hey Dan,

Not sure how well you know the lender but it's always good to ask them what they want (return that is) not necessarily give them what terms you want. You might find that they just want a secure investment with a return lower than you were willing to offer. 

I'm in the same boat as you, looking for funds to do more deals. Can I ask how you came across this lender? Is it someone in real estate or just someone with some money they need to place and you're making the pitch to put it with you? If they're not familiar with real estate, how did you get them interested enough to sit down with you? 

Good luck at the meeting!

I actually met him at a REIA conference last year. I kept his card and reached out to him recently. He said he's looking for a mutually beneficial investment opportunity. We'll see what that means to him when I meet with him tomorrow :-)

I believe @Randal McLeaird  hits the nail on the head there by saying to ask him what terms he is looking for.  Having your portfolio should heavily impact his judgement on you --in a positive manner.   Most likely the lender is use to saying no 10 times to every 1 yes, as most people aren't as prepared as you.

Also, be willing and initially say you are ready for inspections to start (if you have a property lined up).  Then, work on getting that done as it's a hassle if the lender has to jump through hoops to schedule an inspection around tenants.  You can even tell the lender you are willing to meet the inspectors out at the property to pay them (assuming he requires you pay inspection fees).

Lastly, make sure there is no "large" app fee.  The only thing he should be initially pulling on you is credit (based on your exit strategy--if it's a bridge loan and your credit stinks he may require a borrower with good credit).  If you had one of those free credit reports in your portfolio that would be good as well.

If you wanted to go wacky far, you could throw in your tax returns in the portfolio.  Most hard lenders I know won't look at this, however, one may because if you owe uncle Sam a lot of money on a return they want proof it was paid. (he may verify this with a 4506t tax transcript request).

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