Private Lender Proposal Setup?

Question

Hi guys,

I'm almost finished building my personal home and am excited about the whole process. I love development more than any other aspect of real estate and am working on finding a way to start building Multifamily units with private lending. I have a good idea what I need to have to present to a private lender but I don't know how to put it all together in a proposal. Can anybody point me in the right direction?

Thank you!

- Zac

Tom S. · Answer

@Cameron Peters  No problem to help!

It varies a bit by the private lender, some deals were friends and done mostly on a handshake (we wrote a note but no lien on the property).  Others were much more formal like seller financing - the seller giving me a mortgage, and they asked for a lot, although never as much as a bank.

Tom S. · Answer

@Cameron Peters @Zachary Critchett  A package containing your experience, personal financial statement and credit report, how the funds will be used and the exit strategy so the lender will be paid back, are all good starting points.

Jake Langley · Answer

We generally like to see a full financial package of past Deals you have done. Pictures, expense reports, profits etc.  Also I would recommend joining CrowdStreet or Realty Shares and listen to the Webinars for multi-family sponsors.  You can look over the business proposals and ask questions to the Sponsors.  Then make your own proposal look like that.  As a lender I want to see experience as well as the ability to complete the deal.

Matthew Bennett · Answer

Also, I want to add, if you're putting together a proposal or even an OM, then I would add the risks involved with investing. If you're already eyeing a property, nail down the details of that property (deep financials, market opportunity, rental comps, sale comps if you're looking to sell in a few years). Those are good items to put in the presentation as well.

Cameron Peters · Answer

@Tom S. - thanks for the additional info! I'm drawing up a proposal and giving it go!

Zachary Critchett · Answer

Thank you for the feedback @Tom S. and @Matthew Bennett! I really appreciate it!

Cameron Peters · Answer

Thanks @Matthew Bennett!

Cameron Peters · Answer

@Tom S. thanks for tips!

Private Lender Proposal Setup?

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