New Invester - Loan Advice Please

I am a new invester and need a piece of advice on securing either a Hard Money Loan or a Traditional Loan. When asking for a loan, would it be best for me to have a Business plan or a Marketing plan? Do I need either one at all? If not, what documentation will I need to have with me to vastly improve my chances of securing a loan?

I don’t think you need a business plan. With hard money lenders you can usually get approved easily. Each one has different requirements but they are looking at the property more than at you.

With a traditional lender they are looking at your credit as well as the property. That’s the biggest difference.

It’s best to contact whoever you think you want to work with and let them tell you their requirements.

On they have software you can purchase for a reasonable price that will provide a template for inputing information that may be of help to you. EZloans, just to mention one from this forum seems to be reputable with very good advice. I think he would be able to advise you of any addtional information required upon completing the Loan opprotunity wizard from Homefixers.

Now’s a tough time for investors in this market, so you need to have money down or a really good deal. Best bet is to just talk with hard money lenders to see what they’re going to require. The ones I know seem to care more about the deal than your financial situation, but they may be willing to give you a higher LTV if they’ve worked with you for a while or you’re experienced.

What are some companies that provide loans for investors? How should you present yourself to the company? What information should you have ready? Does it matter if dont have a property at that moment or can you just get preapproved?

I to am very new to real estate investing and currently have been looking in the Chicago land area for Hard Money lenders. Do anyone know of any reputable HML that is willing to work with someone with poor credit.

I create a loan package for every funding transaction we handle for our clients seeking financing.

Each property type will require different documents, but there are several documents that are required no matter what type of income producing property type you’re trying to get done.

generally, the package includes:

  1. Executive summary - location or property, descriptions of purchase price, leases, rents, expenses, etc.
  2. Borrower’s financial statement - showing the lender your financial situation
  3. Market Demographics - short snippet of info about the property’s local area with a few pictures and a map.
  4. Current/proforma analysis - analysis showing current and proforma income/expenses/rents/dscr/vacancy, return, etc.
  5. Bio or resume of borrower

With that info, most lenders will issue letters of interest with general terms. It’s neat, professional, and it sets you apart from the hundreds of people who stammer over details over the phone.

Further underwriting will include things like copies of leases, rents, estoppels, credit reports, title, insurance, surveys, environmentals, appraisals, etc.