Would anyone be willing to share the documents that you present to a potential lender? I just have no idea what it should look like or include and we are ready to sit down with a few family members to make the "big ask"!
@Lindsey Turner if you are first asking family members, I think the simplest most easy to understand documents are best. They are investing in YOU. Now, you have to understand what you are doing, and be able to give them their money back too!
I'd have it clearly laid out:
1. You guys know we are learning/building/growing a real estate business
2. We would like to partner with you family member and _______ is how we are going to make it worth your while (partner in the deal, % return, interest rate ... don't be greedy, make it worth their while)
3. Here is an actual deal 123 main street, where we would offer X ... put in Y and make Z ... or rental 123 main street, make ready ____, rents for _______, and we would be netting ______.
4. How do they get their money back? ... this is the most important question ... exit strategy to get them out of the deal ...
Hope that helps.
The documents required and how it should be presented depends on the individual lender's guidelines. Although I am an agent for a private lender, I would suggest you try to speak with your bank or mortgage company first.
@Nathan Brooks that's exactly what I was looking for! Yes, we are approaching two family members so I just wanted to have an idea of exactly what we should present/mention to them! Thanks a bunch!
Your welcome @Lindsey Turner ... good luck!
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