How to appeal to private lenders
Hello BP,
I am inching towards rehabbing my SFH that I purchased cash in 2014. After trying 2 conventional rehab loans that were denied due to high debt/income ratio, I am now trying to get private lenders from people I know. I will be meeting with one today. Based on my study here on BP, I can show an ROI of 28%, Cap Rate of 7.1%, cash flow of 1,674/annual, after vacancy rate, PITI, Cap Ex were taken. I have laid out plans in a way that the property is ready for rehab, Architectural drawings are in place, building permits are in process, Scope of Work estimates from 3 GC in place. Private financing proposal is 12 months term, 2% interest only for 12 months, then pay whole amount at end of term with 8% interest, with a note and a Deed of Trust. I have also included an example of successful deals I have in the past. Are there anything else I should think about, in order to land a business?
Thanks so much for all your help. I am so grateful to have BP as my support.
Sheila