Presenting a Loan Package to Rehab Hard Money Lenders
Profitable real estate investors learn that you must consistently find great investment property. You also need to know exactly which private hard money lenders are funding your particular type of deal. And you must prepare a solid loan package which will be the life blood of your deal. Once you have the property and the lender in mind, and your loan package is ready to go, your next step is to “pitch” your deal to the lender or lenders you have chosen.
Basically, a “pitch” is a quick debut summary of your loan request. It hits the highlights of the your properly prepaged loan package, in ess than a minute. Think of it as the highlighs of your real estate deal and why it should be funded. A pitch is not a long blown chronicle or a friendly conversation. It is one professional speaking to another. Real estate investor to private hard money lender Hard money lender to rehab hard moneylender .
Having a solid presentation demonstrates to your lender that youknow your deal and builds your credibility. It is the first step to get your loan package submitted to your hard money lenders . During your pitch, expect the private hard money lender to ask a few basic questions . They always do and if your Loan Package has been properly prepared, answering those questions will be quick and painless.
Not knowing your own loan package and being unable to muster answers that a lender most likely will likely ask you, shows you are not prepared very well and conveys a greater element of risk. The process of putting together your loan package will prepare you to deliver the pitch and with success satisfy the private rehab money loan requirements
Presenting a loan request to a lender can be easy if you follow these steps :
1. Make sure you have matched your deal to the suitable private hard money lenders. Pitching yourdeal to the wrong lender is like going to Walt Disney to try to sell a R-rated horror movie when they only want PG-rated kids movies.
2. Properly organize the basic elements of the loan package and know each. Can you reel off your deal in 30 seconds? It is easy to do that if your Loan Package is consummate, because you have all the info right there. So, practice your pitch a few times before you call the lender. Make sure it’s smooth try not to be nervous about it. Private hard money lenders will know that you prepared.
3. Understanding how a hard money lender processes loan and the hard money lenders program will give you the cluesyou need to be able to anticipate the questions a hard money lender may ask. Prepare for those questions. It’s actually helpful to make some flash cards with question and answer, or to compose up an outline of the deal and answers to the basic questions. Again, a well prepared Loan Package makes this easy to understand.
4. If you receive a loan denial , or the lender “passes” on the deal,don’t get upset, and sure enough do not get confrontational. or else, ask the lender this question: “Okay, well what is your “sweet spot” for deals you are looking for right now?”, or, “I have some other deals I’m working on, so can you tell me why you passed on this one so I can bring another deal to you when I’m ready that matches more what you’re looking for?”
5. If the lender likes what he hears in your pitch and asks for your Loan Package, get it to him without delay. If you have it in an internet ready loan package file wherever you’ve scanned property pictures and other documents, it’s easy to e-mail it in minutes. If you do it that way, give the documents understandable names. Instead of “property.doc”, make it “123 Elm Street Duplex.doc” and so forth for each of the documents required in your Loan Package.
Or get it faxed. or do a Fedex or priority USPS 3 day Overnight . Just get it there! And at once afterward you do, follow up to make sure the lender has it. If you don’t have a Loan Package ready to go when your lender ASKS for it, you’re at a big disadvantage because by the time you do, the rehab hard money lender may have heard other deals who did have their Loan Packages ready and who get preliminary approval before you even get yours submitted. That’s how to pitch hard money lenders in 5simple steps. As you can see, having your loan package prepared properly is key to your preparation and pitch.
So what can you do to produce a better and fundable presentation? www.OPMCredit.com has taken the guesswork out of preparing the rehab hard money and regular hard money loan package. The Hard Money Loan Blueprint gives you the edge to building a solid loan package that you can rely on to help you be more successful in pitching your deals to private hard money lenders . 
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