What do Hard Money Lenders need to see

[Rich Hupper]

Hello

I am trying to get approved for a hard money loan. I want to create a great presentation for the subject property. I know they want to see the pro forma for the property, but what else? This will be my first deal and I want my property report to look as attractive as possible however I don't know what other investors submit to their HMLs for review.

Also if someone could link me to good pro forma report so I can create my own. 

Also in terms of rehab. Do I need to break everything down by room? How many pieces of sheet rock, how many feet of wire, how many gallons of paint, etc. 

Thank you

[Jacob Blackett]

Hey Rich! 

HML will want to see your experience & why you are able to pull the deal off. What is it that makes you the person to successfully operate the deal?

Also, use a worst, most likely, best case scenario proforma. Worst being over budget on rehab with low on ARV and long to sell- best case hitting your budget & hitting your high ARV timely. Overall, the HML underwriter will want to see that everyone survives in all scenarios.

Support your ARV- get good comps that are presented in an easy to see manner i.e. show a map with your subject property and the comps on it- then show the details beds/baths/sqft/yrbuild/etc & price per square foot. Don't get too aggressive with your ARV.

Connect with me and I can share some spreadsheets. 

Best- Jake 

[George Krajacic]

Hi Rich,

If you follow Jake's suggestions you should be able to get a loan as long as you deal makes sense. The fastest way not to get funded is by overestimating your ARV and underestimating a repair cost. Since this is your first project and we do not know how much experience you have, it might be a good idea to get signed repair contract by licensed contractor. If the project still makes sense by using general contractor that would assure the funding.

Good luck,

George 

[Rich Hupper]

Thank you both.

I have never done a flip before however my father is a general contractor and I use to work for him doing site work before I got my RE license 6 years ago. 

I know the basics to the process and I know my dad could help me get started but he is older and I think he is slowing down.