Hard money for newbies

[Cody L Williams]

What are all the documents that a hard money lender might want

[Marty Johnston]

Cody,

Below is a copy of a Doc List for a lender we work with and they ask for the same items from a First Time investor as they would an experienced one (except perhaps HUD-1 statements to prove experience). Hope this helps!

LENDER DOCUMENTATION CHECKLIST:
*1. Loan Application + Track Record (Signature Required/Included in package)- Will send once we have fee agreement back
*2. If Purchase: 1 month complete bank statement proving down money and closing costs (September statement) - all pages

*3. Purchase and Sales Agreement- fully executed.
*3a. Copy of check for proof of and Earnest Money put down
*4. Contact info for individual that can provide interior access to subject property. (Need name, email and phone number)
*5. Rehab Budget- Needs to be on lenders form prior to closing (attached). But to get appraisal ordered you can send your rehab budget and a scope of work as well please that explains in detail what is being done to the house.

*6. Escrow/Title/Closing Company contact information (Need name, email and phone number)
*7. Insurance reps contact info. I will get declaration page from them - Replacement cost plus improvements. (Need name, email and phone number)
*8. Contractors contact info- I will get the docs we need from them. (Need name, email and phone number)

9. Photocopy of valid ID for all borrowers
10. Company EIN Document
11. Company Articles of Incorporation/Organization.
12. Company Bylaws/Operating Agreement (Fully Signed)
13. Company Certificate of Good Standing
14. Company W-9 (part of lenders application, please fill the W9 out under the entity name).
15. AML Document- will send later (anyone over 25% owner needs to fill out and sign the AML document)


CONTRACTOR DOCUMENT CHECKLIST (IF REHAB LOAN):
1. Copy of Contractor license
2. Liability Declaration Page (date in the top right corner cannot be more than 90 days old)
a. Commercial General Liability Insurance with minimum coverage of $1million OR
b. Personal Liability Policy with minimum coverage referencing subject property
3. If contractor has employees Declaration Page for Worker’s Compensation insurance OR
-If contractor does not have employees a letter of explanation, signed and dated by the contractor stating that he/she does not have any employees (Please make sure letter specifically states that you are exempt from workman’s comp insurance because you have no employees.)

4. Two previous projects from the GC – addresses are fine, if they have the SOW for those even better.