What Should A Comprehensive Presentation Plan List for a Lender?

Question

What should a comprehensive presentation plan for your lender include so they know you have all your ducks in a row?

My last question before I decide if I want to go BP Pro.

Jerry Padilla · Answer

A conventional lender - backed by Fannie Mae and Freddie Mac - require the property to be in your personal name and won’t lend to an LLC. They look at your W2, credit score, DTI’s and income to determine if you will qualify for the loan.

A portfolio lender and other lenders have their own set of criteria to determine if you qualify. They will lend to an LLC, but also many times have higher rates and possibly adjustable rates as well. They have different programs but typically still look at your credit score, possibly bank statements, and or the cash flow of the property.

Michael Kinsella · Answer

@Jennifer Ryan

Hi Jennifer, I think that @Jerry Padilla provided some good insight above.

My 2 cents below...

What you will find regardless of which lender you work with is that operate on a sort of 'progressive disclosure' basis. That is, once you provide a set of documents, they will ask for another set of documents based on the documents that you just gave them. Sometimes, there will be additional documentation required due to some of the information that you previously provided, and sometimes it will just be a result of standard operating procedure.

I certainly admire you wanting to get your ducks in a row, that is an organized, laudable way of going about things, but regardless of which lender you choose to go with, they will pretty much all operate this way.

With that said, you can begin to think about some items that will be important from the lender's perspective, one of which @Jerry Padilla touched on above; if the property is in an LLC or personal name.

Hope this helps,

Michael

Jerry Padilla · Answer

@Jennifer Ryan

Are you planning on this property being in an LLC or your personal name?

If you are going to start with your personal name, this isn’t necessary. You would just need to qualify based on your income, credit, DTI’s and funds.

Jennifer Ryan · Answer

Thank you Jerry Padilla.

Can you tell me why the expectations in a presentation are different if you have properties in a LLC from the perspective of a lender?

What's the comparison?

What Should A Comprehensive Presentation Plan List for a Lender?

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