All Forum Posts by: John King

Jacob,

I think you've come across an interesting point. I would imagine that private investors would be more interested in the profitability of the individual investment where a banks interest is more aligned with the ability to repay the debt as agreed (often based on income streams not related to the investment). Insight into this from someone who knows more about the banking/lending side would be immensely helpful.

For simplicity sake, lets talk about the financial statements that a bank would require when loaning against a single family investment property. The bank will have standard requirements and private lenders will likely follow suit (i.e. base their required reports on that of the banking industry).The borrowing entity would be a private investor; an individual.

I'm interested in educating myself on the financial reporting vocabulary & ideas. To the bank, a borrower which is abreast on his/her investment finances would be more likely to repay the debt as agreed.

Thanks in advance.

Hi Guys,

When seeking financing, whether it be from a bank or private lender, what types of financial statements should be presented to show the lender professionalism and that due-diligence has been thoroughly performed?

Thanks in advance.