So , you just got that great bank-owned property under contract and now you need a loan to buy, fix and flip. You went to three hard money lenders and they turned you down. Why? Because you SMELL at selling your deal. That's correct, you need to find out how to SELL your deal to a bank.
Selling your deal means making a good loan package to submit to the bank. Begin by getting a binder from Office Depot, with a collection of tabs you can print on. Mark the tabs into the following sections:
Here's what you want in each section:
About Me.
This section should contain a FNMA 1003 loan application, a copy of your credit history, 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 conventions you've been through. A listing of references would help, as well. Dropping Bill Bronchick's name could not hurt!
Purchase Contract.
A copy of the purchase contract with any addendums should ideally go here.
Assessment.
Ideally an evaluation, but at least an estate broker BPO (broker's price opinion) should go here.
Insurance Binder.
A copy of a commitment to insure from your insurance supplier goes here.
Title Commitment. A copy of the title commitment should ideally go here.
Pictures. Detailed photographs in and outside of the property, IN Colour.
Inspection. Have a professional inspection done of the property and put his report here.
Repair estimate.
A fix estimate from a LICENSED general contract (copy of his license, too) should really go here. Also an inspection report and a list of repairs to remedy the difficulties addressed in the report.
Numbers.
Insert a spreadsheet of the breakdown of the numbers. Your purchase 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, as well.
Timeline.
A diagram of the outline of your construction project should go here. Again, this is going to be COMPLETE and pragmatic. Microsoft Plan It's a good software application to set this up professionally.
Selling your deal means making a good loan package to submit to the bank. Begin by getting a binder from Office Depot, with a collection of tabs you can print on. Mark the tabs into the following sections:
Here's what you want in each section:
About Me.
This section should contain a FNMA 1003 loan application, a copy of your credit history, 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 conventions you've been through. A listing of references would help, as well. Dropping Bill Bronchick's name could not hurt!
Purchase Contract.
A copy of the purchase contract with any addendums should ideally go here.
Assessment.
Ideally an evaluation, but at least an estate broker BPO (broker's price opinion) should go here.
Insurance Binder.
A copy of a commitment to insure from your insurance supplier goes here.
Title Commitment. A copy of the title commitment should ideally go here.
Pictures. Detailed photographs in and outside of the property, IN Colour.
Inspection. Have a professional inspection done of the property and put his report here.
Repair estimate.
A fix estimate from a LICENSED general contract (copy of his license, too) should really go here. Also an inspection report and a list of repairs to remedy the difficulties addressed in the report.
Numbers.
Insert a spreadsheet of the breakdown of the numbers. Your purchase 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, as well.
Timeline.
A diagram of the outline of your construction project should go here. Again, this is going to be COMPLETE and pragmatic. Microsoft Plan It's a good software application to set this up professionally.
About the Author:
Mary Sensible is a loan expert who has been associated with business loan in singapore and has more than thirty years of expertise in finances. She has helped a lot of people to obtain Fast Unsecured Loans, and lots of other products without regard for their credit situation.
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