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Updated about 5 years ago, 01/04/2020
What materials should be on hand when seeking private money?
Hey all,
I'm completely new to this, so please feel free to point out any mistakes I make.
I've been super excited for the past few months at the possibility of breaking into real estate, specifically rentals, and more specifically House Hacking + BRRRR.
I have identified 'capital' as my critical path to making this happen. I've actually been living in SEAsia for the past 2 years, so I have no W2 income to show, which makes me nervous about getting an FHA loan for my first house hack. I also have little money saved, since I have been living on a SEAsia salary. Currently, I'm doing freelance work and some odd jobs since I've been back in the states for about 3 weeks. (I have about 3k liquid cash, and a 10k Roth IRA, no debts, monthly expense to income ratio of ~.31)
I can either go the slow route, get a W2 job, get some decent W2 income, save as much as possible and continue learning for the next year before 'starting' or, I can seek private lenders to accelerate this plan.
I've learned a lot already, and feel like I'm about to the point where I need to just get started, go for it, and trust I will fill in the cracks along the way.
My question to you is:
What's all the information that you, as a potential private lender, would like to see from someone seeking capital?
For some reason, I have the idea of putting together a detailed binder of my plan, markets I'm eyeing, different number projections and scenarios, etc. and understanding that binder backwards and forwards and pitching the plan to potential lenders.
Is there some kind of 'checklist' of documents, figures, etc. that I can refer to in order to make sure I have everything on hand that I might need when addressing lenders' concerns and questions, in order to convince them on my plan?