Each private lender will have their own requirements that you will have to meet, but if you have these things in hand, you will be fast on your way to approval.

1. Locate a reputable hard money broker or lender. If you don’t already have an established relationship with a hard money lender, a good hard money broker can guide you towards finding a hard money lender and help you avoid fake lenders or fee collectors.
2. Obtain a preliminary title report. Hard money lenders generally require proof of a clear title before they fund a loan on a property. A title company can provide a preliminary report for you as well as title insurance (for more on title insurance, check out our previous blog here).
3. Gather together your property documents. You will likely need financial or income statements for the property going back one or two years. If it is a rental property, you’ll need copies of leases and rent rolls. The hard money lender will want to know the income and expenses for the property in order to assess its value. If you are borrowing as a corporation or LLC, then you may also need to provide copies of your corporate articles of incorporation or operating agreement, respectively.
4. Write a brief executive summary. This should summarize your plan for the property: how much you want to borrow, how the money will be spent, and how you will pay it back. For more tips on writing a successful executive summary, check out our Executive Summary blog here. It can also be helpful to include a few photos of the property and any buildings on it with your summary.
5. Provide proof of insurance. You will need to obtain a new policy for the property if you are planning to purchase it. Your lender will want to be listed as either a “loss payee” or as an “interested insured.” You will need to have your insurance company send a proof of insurance with the lender listed in order to close the loan.

As soon as you’ve lined up a hard money lender, ask them for a full list of everything they will need from you in order to close your loan. This way, you can get everything together before you get to the actual closing, which will vastly speed up your loan approval process.