Hard Money Lenders

[Account Closed]

Good morning Everyone, I am getting prepared to sit down and pitch a deal to a hard money lender. I was wondering what should I bring when I talk with this lender? I plan on bring a copy of the BP deal analyzer, do I need to bring my business plan? Thanks for you help and advice. Chris McFadden

[John Santero]

Think what you will need from a bank and add to it. If this person is local and you can have a face to face, plan the conversation. Get them involved in it by asking what they want to achieve. They are they interested-Is it just returns, a one time shot placement, or a continuous business. Have they invested in RE before? Usually, they have and know what they are looking for. Find out what that is-

If it is a first time meeting- I dont bombard them with alot of numbers. A conciseness overview of what you expect and how you got their will be fine. They are sizing you up. I say I can back the numbers with as much detail as they desire and can email it to them or even better- a follow up meeting.

If it is a hard money lending company- it is all about numbers. What is the appraisal now, what is the build out, what is the equity, what is ARV. How much you are vested. How are you going to repay. It all goes into a computer and it spits out the program terms.

No disrespect to the suit idea- but you can wear a thong and if the numbers sing, they will lend you the money! GOOD LUCK!