If you wish to acquire a hard money loan but need to know how to go about it, Hard Money Bankers has outlined below how to make yourself irresistible to hard money lenders. Hard Money Bankers is a hard money lender that helps borrowers to access fast and easy capital for their real estate projects.
Best Tips For Getting Easy and Fast Loans In Washington D.C.
Make Sure You Have The Right Project
Before meeting a hard money lender, your project must be detailed and contain its profit forecasts. The point is that the hard money lenders need to know that you have a profitable formula with a high real estate success rate.
Successful investors usually use a rigid formula of 65% ARV(after-repair-value) minus construction cost to decide the price for each real estate piece. This is usually a significant initial step when considering a purchase.
Before applying for hard money loans, you must make sure you have your personal success formula. This is because the hard money lenders will inquire into that. If you still need to get your formula, you can join an investor group to learn; your hard money lender could also give you a referral.
Make Sure You Have An Executive Summary With An Exit Strategy
An executive summary is a short write-up that explains your plan concisely. It includes the amount you wish to loan, the reasons for your loan request, and the timeline for the project that; includes the amount of cash you have invested, when you acquired the property, and how much it costs.
Your executive summary should be short but well-detailed. You must also align your exit strategy with your financials, credits, etc. You must clearly state if you will be
- buying, rehabbing, and reselling
- buying, holding, and paying off the loan through other resources; or
- buying, holding, and refinancing.
Contact us at Hard Money Bankers if you need an example of an executive summary, and we will gladly provide one.
Include Your Personal Financial Statement and Schedule of REO
Hard Money Bankers tend to review your financials to ensure you can repay the loan if you do not follow the pre-signed agreement. The hard money lenders do not want to claim your property, so they would prefer that you can repay them. Thus, including your financial statement and schedule of REO will improve your chances of getting approval for the loan.
Include Information On Comparable Sales And Images Of The Property
Some hard money lenders have access to MLS and can easily acquire comparable sales, so it would be good if your ARV matches theirs. However, some still need this access, and sending information on comparable sales data and pictures of the property and the surrounding area will benefit your loan approval process.
Provide Scope Of Work and Contractor Estimate
It will be advantageous if you get a contractor to estimate the cost after looking over the property. Ensure that this estimate from the contractor is in writing and provide the lender with the work schedule and timeframe. This will give you a higher chance of your loan getting approved.