Approaching small bank lenders

[Mat Poole]

I’m starting to shop around for lenders for my first property at the local credit unions. Any advice on information on myself that I should have ready to turn over?

Obvious things like tax returns and bank statements are easy but what are some more difficult things I should go ahead and collect. I’m self employed and want to look as legitimate as I can.

[Jon Schwartz]

@Mat Poole, I did the rounds with local banks in Arkansas when I was considering investing there. Documents-wise, a profit/loss statement and balance sheet for your business from a CPA would be great. Generally, though, just be honest and use numbers from the start. “I have a consistent income of $XXX, my net worth is about $XXX, my liquidity is $XXX, and I’m looking to buy a property in the $XXX range.” Also tell the banker that you’ll open an account at their bank for property expenses and capex reserves — bankers loooove hearing that!