So , you simply 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? As you REEK at selling your deal. That's right, you need to learn how to SELL your deal to a bank.
Selling your deal means creating a good loan package to submit to the licensed money lender . 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 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 have been through. A catalogue 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 really go here.
Evaluation.
Ideally an assessment, but at least an estate broker BPO (broker's price opinion) should ideally go here.
Insurance Binder.
A copy of a commitment to insure from your insurance provider goes here.
Title Commitment. A copy of the title commitment should really go here.
Stills. Detailed pictures in and outside of the property, IN COLOR.
Inspection. Have a pro inspection done of the property and put his report here.
Fix guesstimate.
A repair estimate from an Approved general contract (copy of his license, too) should go here. Also an inspection report and a catalogue of repairs to remedy the issues addressed in the report.
Numbers.
Insert a spreadsheet of the breakdown of the numbers. Your purchase costs, closing costs, holding costs, repairs, realtor costs, etc. These costs should be complete and practical. Remember about concessions and paying the buyer's FHA loan costs, as well.
Timeline.
A diagram of the outline of your construction project should ideally go here. Again, this could be COMPLETE and realistic. Microsoft Plan It is a good programme to set this up professionally.
Now, you have a product you can SELL. Go out and approach your hard bank and see if your results are dissimilar. I bet they will be impressed!
PS - don't submit an incomplete package to your lender. They loathe receiving things in pieces and parts.
Selling your deal means creating a good loan package to submit to the licensed money lender . 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 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 have been through. A catalogue 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 really go here.
Evaluation.
Ideally an assessment, but at least an estate broker BPO (broker's price opinion) should ideally go here.
Insurance Binder.
A copy of a commitment to insure from your insurance provider goes here.
Title Commitment. A copy of the title commitment should really go here.
Stills. Detailed pictures in and outside of the property, IN COLOR.
Inspection. Have a pro inspection done of the property and put his report here.
Fix guesstimate.
A repair estimate from an Approved general contract (copy of his license, too) should go here. Also an inspection report and a catalogue of repairs to remedy the issues addressed in the report.
Numbers.
Insert a spreadsheet of the breakdown of the numbers. Your purchase costs, closing costs, holding costs, repairs, realtor costs, etc. These costs should be complete and practical. Remember about concessions and paying the buyer's FHA loan costs, as well.
Timeline.
A diagram of the outline of your construction project should ideally go here. Again, this could be COMPLETE and realistic. Microsoft Plan It is a good programme to set this up professionally.
Now, you have a product you can SELL. Go out and approach your hard bank and see if your results are dissimilar. I bet they will be impressed!
PS - don't submit an incomplete package to your lender. They loathe receiving things in pieces and parts.
About the Author:
Robert Newton is a business writer specializing in finance and fast 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 line of credit expert.
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