One of the ways in which hard money lenders are different from conventional lenders is that they care about the character of the borrowers to whom they lend. This means that first impressions are of paramount importance when one is meeting with a private lender because you only have one chance to make a first impression. There are four key things to prepare for before you present your loan request to a lender.

Provide your lender with an executive summary.

This is an especially crucial item that often gets overlooked. Your executive summary should act as an overview of the project or deal for which you’re requesting financing and explain the rest of the documentation that you’re submitting so that the lender can quickly get an understanding of your plans without having to read everything in detail upfront. (For a more detailed overview of how to write an executive summary for a hard money loan request, see our blog on executive summaries.)

Tell your lender about yourself.

Private lenders want to know the person behind the numbers, so in addition to a loan application and financial information such as copies of your credit reports and tax returns, you’ll also want to include a resume that showcases pertinent experience for your planned project .

Show your lender the property.

This doesn’t mean taking your lender to physically view the property (though some private lenders will visit local properties before approving financing), but rather using photos, appraisals, and financial documentation to paint a picture of the project as you are envisioning it. Documentation that should be included is as follows: a copy of the purchase contract (if you’re buying a new property) or Broker’s Price Opinion or other market analysis (if you’re refinancing), an appraisal, the Commitment for Title, a copy of the survey, inspection reports, and contractor repair estimates (if any renovations are planned).

Provide other financials for your lender.

In addition to your personal financial information, if you are looking to purchase or refinance an income-producing property, then you should also be prepared to provide at least two years of financial statements (e.g., balance sheets and income statements), as well as any rental agreements. Also, if you, as the borrower, are representing a corporation, then you should present at least two years of financial statements for the corporation as well. Providing a detailed overview of the full financial situation will show your lender that you are a good investment and have the ability to repay the loan.

Presenting a complete package to your private lender will increase your chances of getting your loan request approved.

If you have a project in need of private capital financing, contact Montegra at 303-377-4181 to discuss your loan request and find out more about our hard money lending programs.