Are You Credible?
Are you a new investor, found a few deals and have reached out to private money lenders only to be turned down because you were tripped up by trying to answer their #1 question; Have you done this before?
You can’t get experience without doing some deals and sometimes you feel you can’t get any deals because you don’t have any experience. Don’t worry, this happens to all new investors from time to time and I’m going to tell you how to overcome this and work with private money lenders to get your funding in place.
You need Credibility.
To sum it up, the people you are looking at to be potential private lenders just do not believe you are going to be able to do what you are telling them because you are new. If you have never done a deal before, being an effective, successful real estate investor requires a team of players you can rely on to get the job done, whether you are on your first deal or 200th.
This team should include, to name a few, a title company, a realtor, attorney, contractor (or 5) and your lender(s). These people are on your team because you have taken the time to put these people in place, you’ve networked and interacted with them to get to know them and see if their business schedules could mesh with what you are looking to accomplish.
In order to establish some credibility with private lenders, I recommend to new borrowers to put together a “Credibility Package.” This would include:
Your experience – if you have none, say so and then include something like, “I am new and just launched my investing business, I’ve gone to great lengths to put together a great team of very experienced real estate experts including: *List your team
The project profile. Why you selected this project.
The property address and neighborhood
The key repairs and how they will be performed
The timeline of the project The exit strategies (multiple) Are you going to flip the property or refinance to hold?
Preliminary title issues, if any and how you will solve
Insurance and licenses Any other details you think they need to know about the project
Armed with this information, you should not have any difficulty demonstrating your preparation or intent. Most private lenders will feel much better about lending their money to you if you are well prepared and show that you have done your homework about your business.
If you would like to learn more about private lending or have a deal you would like us to have a look at, we would be happy to be part of your team as your private money lender, funding your projects. We are Geneva Lakes Funding.
Give us a call at (262) 222-6400. Genevalakesfunding.com