What do lenders want from me?

[Brian Barfoot]

I'm interested in getting started with commercial loans/private money and I'd like to go into the meeting with enough information to satisfy the lenders. I have an LLC with two properties, one that has been rented for just over a year and the other that has been rented for about eight months.

The first property we got for 85K with 20% down and it rents for 1200/month. It was assessed for 85 during the sale process. Debt service with all taxes and insurance comes to 630 which leaves 570 a month profit less capex and expected vacancy.

Second property we bought short sale for 78 with 15% down and it assessed for 110K during the sale. Debt service with taxes and insurance is 870 and we rent it for 1100 but pay an extra 130 per month on the principal right now to try and get the equity to 20% and get rid of the PMI. Depending on the metric that leaves 100 or 230 as cash flow before accounting for capex and vacancy. There have also been a few late fees that are in the income column but not many.

What other data should we bring when hitting people up to fund our next projects? What format is most effective for presenting the information? I feel like it’s all pretty basic but I know that I think about this stuff all the time and I may need to convince someone who’s new to it all.