Preparing Financial package for Private Lenders and Banks?

7 Replies

Hello BPers!

When preparing my financial presentation to Private lenders and Banks, what do I need to present, and how should I present it?

@Will Foster there are some pretty standard items you will need to gather but each bank will have some additional items for you to gather too.  Especially private lenders.  They might have their own "financial statement" document they might want you to complete.  But here's the standard items just about everyone will want to see:

Items Needed List

  • Copy of Driver’s License
  • Past 60 days of paystubs
  • Last 2 years W2s and/or 1099s for all jobs you worked
  • Last 2 years of tax returns, All pages
  • 2 most recent months of bank statements, All pages please

And then based on your personal history there could be other items such as

  • Divorce Decree
  • Social Security Award Letter or Social Security 1099R
  • Mortgage Statement on all homes owned
  • Insurance Declaration Page on all homes owned
  • HOA Statement
  • College Transcripts
  • Survey
  • Lease Agreements
  • Addresses for all the properties you own
  • DD214
  • Name and Address of your Nearest living relative
  • Name and Address of the Family Member who is gifting you funds
  • Bankruptcy/Foreclosure/Short Sale discharge paperwork

Hope this helps!

This post has been removed.

Hi @Andrew Postell ,

Thank you for your post. 

I'm totally new to all this and realized I did not put in some key  information. Not sure if any of this makes a difference with what to prepare

- First time home buyer

- Looking for a Multi Family (Duplex or 4plex)

- Buy and Hold

- Owner occupied, I plan on living in one unit.

The Financial Planner I work with is going to help prepare everything, but besides what you've listed, is there a certain way to have a package presented, ie: binder, digital copy PDF?

One last question. I live in CA, but am planning to move to the state I want to invest in, Colorado. Is it better to talk to lenders in CA or should I talk to people in Colorado? Or does it matter?

Thanks for your time!

@Will Foster If you're just planning on using standard conventional financing - which is what it sounds like - don't overthink things.  You don't need to impress your loan officer by any means. Most lenders will have a way for you to upload your documentation into their system. Having everything in a clean pdf format is helpful. 

Where your lender is physically located is up to you. Much of what we do can be handled online and people can be licensed in various states. If you do value the face-to-face interaction then you might consider that. Otherwise, you might be better off developing a relationship with a loan officer that will help you with REI both now and in the future as you try to acquire more properties.

@Will Foster no problem sir.  Bigger Pockets is a super friendly sight that this is what we are here for.  And I'll reinforce what @Jared Bouzek mentioned - you presenting your information in one format or another will not affect your approval.  The lender will tell you what they need - and if you don't have it right then and there, you can just get it later.  Most people don't have everything up front.  AND the bank may not be able to tell you what they need until they see some of the things anyway.  

Now, what location is better?  This one you will have to trust your gut on.  Some lenders in California may not be licensed for Colorado and some might be.  So you'll have to ask.  When speaking with a lender keep in my they should be earning YOUR business - not the other way around.  You are super important and should be treated as such.  Your are the customer.  I would encourage you to shop lenders.  2 or 3 should be good.  Not only should you be receiving a "loan estimate" or "Fee Worksheet" to compare costs but you should feel comfortable with you you work with.  They should know the ins and outs of investment property lending since you are considering a 2-4 unit.  Don't feel obligated. Let them know up front that you are comparing and interviewing.  See how they treat you.  This will be a 30 year relationship - that's longer than a lot of marriages!  So take your time and trust your gut.  

Hope this helps!

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here