What do private lenders and potential partners want to see?

[Mason V.]

I wasn’t sure if I should post this here or in the BP Marketplace.

I am planning on acquiring my first property, SFH or MultiFam, before June 2015. Ideally I would prefer to do this on my own. However, if I can't get a conventional or FHA loan I may need to find a private lender or partner. Before I can search for either though, I have to know what informant I need to gather ahead of time. Thus far I assume I will be need to get: an appraisal, asked for price, comps, known issues with property, exit strategy (my aim is buy & hold), and intended rehab if necessary.

What addition information would I need to acquire before going in search of alternative financing.

[Brian Burke]

Potential private lenders need to be convinced of two things:

1. That you are likely to successfully execute the plan.  Gather up info on what you've done--other real estate successes, business successes, or relevant experience such as construction, finance, etc.  anything that tells your story. 

2. That there is security for their money.  An appraisal or comps showing that there is equity behind them, preliminary title report showing no liens (or ability to obtain title insurance), and data on rehab and costs along with a plan on how those items will be funded.  Cash reserves will also help a lot.

Good luck!