Hard money lenders have the freedom to base their decisions about which loans to fund on more than just a checklist of requirements. Therefore, how you present yourself and the project you want to finance is just as important as the value of the property. Even if you’ve found a great deal on a fantastic property, if you don’t present your plans in a way that makes your hard money lender believe that you can pull it off successfully, then your loan request is unlikely to be approved. The following information should be part of the package you present to your hard money lender when you make your loan request:

1. Introduction. Start by introducing yourself as a borrower to your hard money lender by providing a loan application with your basic financial information, a copy of your credit report (with explanations of anything negative or problematic), and a brief resume of your real estate investment experiences. If you have little or no experience, then it’s a good idea to include references, or the experience of team members who will be working with you on the project.
2. Executive summary. This should summarize the big picture vision of your property, provide loan details, and discuss your plans for any rehabilitation or improvements.
3. Purchase contract. Include a copy of the complete purchase contract, if applicable.
4. Property appraisal. It’s best if you are able to include an actual appraisal of the property (though many hard money lenders will still want to conduct their own independent appraisal of the property), but you can also use a broker’s opinion of value (BOV) if you are unable to obtain an appraisal.
5. Insurance binder. This is a commitment to insure the property from your insurance company.
6. Title insurance. Title insurance shows that you (and the title company) have researched the property and protects you and your lender against hidden risks such as mistakes in the legal record for the property, forged deeds or other documents, and other types of frauds.
7. Photos. These should be detailed, colored pictures of both the inside and outside of any buildings on the property in order to give your lender a better sense of the property’s assets and value.
8. Property inspection. This should be a copy of an inspection checklist completed by a professional.
9. Estimate of repair costs. Ideally, estimates should come from a licensed general contractor, but a listing of the planned repairs and their anticipated costs may suffice in some situations.
10. Financial documentation. It’s helpful to provide a spreadsheet that breaks down all of the numbers and financial details including purchase costs, closing costs, holding costs, repairs, and any income produced by the property. If the property has tenants, then you should also include copies of the leases and rent rolls.
11. Timeline. This should plot out the timing of your project, especially any construction plans for rehabilitation or improvements.
12. Exit strategy. It’s very important to show your lender how and when you plan to pay off your loan as most hard money loans are short term, lasting only one to three years.