So , you got that great bank-owned property under contract and now you need a loan to buy, fix and flip. You went to 3 hard cash banks and they said no. Why? Because you STINK at selling your deal. That is correct, you need to discover how to SELL your deal to a bank.
Selling your deal means creating a good loan package to submit to the license moneylender . Begin by getting a binder from Office Depot, with a group of tabs you can print on. Mark the tabs into the following sections:
Here's what you need in each section:
About Me.
This section should contain a FNMA 1003 loan application, a copy of your credit report, a copy of your driver's license and a quick resume of your experience. If you've no experience, then at least put a list of books and seminars you've been through. A list of references would help, as well. Dropping Bill Bronchick's name couldn't hurt!
Purchase Contract.
A copy of the purchase contract with any addendums should ideally go here.
Evaluation.
Ideally an appraisal, but at least an estate broker BPO (broker's price opinion) should go here.
Insurance Binder.
A copy of a dedication to insure from your insurance supplier goes here.
Title Commitment. A copy of the title commitment should go here.
Stills. Detailed photos in and outside of the property, IN COLOR.
Inspection. Have a pro inspection done of the property and put his report here.
Mend estimate.
A fix guess from an Approved general contract (copy of his license, too) should ideally go here. Also an inspection report and a catalogue of repairs to address the issues addressed in the report.
Numbers.
Insert a spreadsheet of the breakdown of the numbers. Your acquisition costs, closing costs, holding costs, repairs, realtor charges, etc. These costs should be complete and realistic. Don't forget about concessions and paying the buyer's FHA loan costs, too.
Timeline.
A diagram of the outline of your construction project should really go here. Again, this is going to be COMPLETE and practical. Microsoft Plan It is a good programme to set this up professionally.
Now, you've got a product you can SELL. Go out and approach your hard money lender and see if your results are dissimilar. I bet they will be impressed!
PS - do Not submit an incomplete package to your bank. They hate receiving things in pieces and parts.
Selling your deal means creating a good loan package to submit to the license moneylender . Begin by getting a binder from Office Depot, with a group of tabs you can print on. Mark the tabs into the following sections:
Here's what you need in each section:
About Me.
This section should contain a FNMA 1003 loan application, a copy of your credit report, a copy of your driver's license and a quick resume of your experience. If you've no experience, then at least put a list of books and seminars you've been through. A list of references would help, as well. Dropping Bill Bronchick's name couldn't hurt!
Purchase Contract.
A copy of the purchase contract with any addendums should ideally go here.
Evaluation.
Ideally an appraisal, but at least an estate broker BPO (broker's price opinion) should go here.
Insurance Binder.
A copy of a dedication to insure from your insurance supplier goes here.
Title Commitment. A copy of the title commitment should go here.
Stills. Detailed photos in and outside of the property, IN COLOR.
Inspection. Have a pro inspection done of the property and put his report here.
Mend estimate.
A fix guess from an Approved general contract (copy of his license, too) should ideally go here. Also an inspection report and a catalogue of repairs to address the issues addressed in the report.
Numbers.
Insert a spreadsheet of the breakdown of the numbers. Your acquisition costs, closing costs, holding costs, repairs, realtor charges, etc. These costs should be complete and realistic. Don't forget about concessions and paying the buyer's FHA loan costs, too.
Timeline.
A diagram of the outline of your construction project should really go here. Again, this is going to be COMPLETE and practical. Microsoft Plan It is a good programme to set this up professionally.
Now, you've got a product you can SELL. Go out and approach your hard money lender and see if your results are dissimilar. I bet they will be impressed!
PS - do Not submit an incomplete package to your bank. They hate receiving things in pieces and parts.
About the Author:
Robert Newton is a business writer specializing in finance and payday loans and has written prominent articles on the finance industry. He's done his experts in Business Administration and is at present aiding as a personal loan expert.
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