Attracting Private Money Lenders To Your Real Estate Deals Is Easy If You Have a Professional Credibility Packet to Show Your Private Lender…
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Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got quick video on using credibility packets to attract private lenders for your real estate investments.
– Quick Bio of Self
– Picture, real estate experience, deals you have done?
– Do not spend a lot of time on yourself, no one really cares
– Property of Interest:
– Property Comps – get them from realtor – MLS – Houses sold in past 90-180 Days
– similar in sq.ft and neighborhood/subdivision
– Highlight – Address, list price, sq.ft., year built, realtor remarks
– Location – Quick description of neighborhood, schools, malls, near highway, etc.
– Include graphs if you want to show market trends
– Pictures of interior – carpet, kitchen, bedrooms, flooring, appliances (hot water heater)
– Pictures of exterior – siding (brick or wood), backyard, fence, roof, external units
– List of repairs – itemize cost
Profit Analysis – What’s in it for the Private Lenders?
Break down the numbers
– List Price = $100K
– After repair value (ARV) = $120K
– Repair Costs = $10K
– Taxes/Insurance = $3K
– Closing = $5K – Unless seller takes closing cost
– Total costs = $18K (deduct from list price)
– Starting Cash Offer – $80K
– Return on Investment (ROI)
-offering 3 points at closing = $3600
– Include interest rates – in case deal runs long
– emphasize how the ROI is much better than interest from the bank or IRA account.
– Exit strategies
– Title company you will be working with
– Timeline – Project completion date – include repair timeline
– Contact information
– Contract Agreement
Building credibility among your private money lenders is essential to securing continued funding in the future. You have to remember that you will most likely be asking people, with virtually no real estate investment background, to give you large amounts of cash for something they know nothing about. So it is your job as the investor to inform them, and make them feel comfortable enough to trust you with their private money. Credibility kits are cheap in cost but great in value. A binder, some dividers, pictures, you are probably looking at around $5-10 dollars for a complete package. All the other information you are providing is FREE.
Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you’ll be automatically notified when we upload more quick video tips for you. Take care and good investing.