If you want to achieve success in attracting funding outside the confines of a banking institution, it is important that you brush up on your presentation skills.
Just as the condition of a property on the outside is a huge indicator of the condition on the inside, the presentation that you give a lender is a major indicator of how you will approach your business and care for their money.
That's why when I approach a lender with a loan request, I always include my Property Analysis Packet. If emailed, I will make a nice PDF document and email them the information. If given in-person, I will always purchase a professional binder (a nice one, the kind with the clear cover from an office supply store) filled with every aspect of the deal put plainly and neatly on paper.
This product contains the one-page Project Summary, that details the “big picture” of what I'm planning on doing. This includes a photo of the front of the house and a brief outline of some of the features of the home. This page also includes a brief description of the current condition, repairs needed, how much funding I need, my timeline for completing repairs, and my multiple exit strategies.
Also included is the detailed financial Investment Property Calculator (Excel Spreadsheet) that shows, on one page, all the major pertinent numbers such as purchase price, closing costs, repair costs, holding costs, future sale price and my return-on-investment (at various price points). This shows the lender that I fully understand what makes this project a great deal. It is also easy to follow so the lender doesn't get lost in the math.
To do this, open the calculator in Excel and simply change a few key pieces of information and all the numbers are re-calculated for you. This took many, many hours to perfect over the past several years but now that I have it – it takes just a few seconds to compute all the numbers needed to decide if a deal is worth pursuing.
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