Ok, I have to narrow down my focus.  Finding hard money loans and preparing packages takes up too much of my time.  So I am going to give you my personal hard money funding techniques that get my deals funded time & time again.  These tips will help your hard money lender make a decision allot easier.  These tips have taken me years to develop and I am passing them on to  help my fellow investors cut years off of the learning curve!  There is so much business out there right now you want to take massive action and you would prefer not to have your deal get shot down because you didn’t package it correctly!

Hard Money Loan Package Summary

A.  Know your ARV (After Repair Value).  You MUST know your comps.  If you think hard money lenders will do it for you think again.  There’s too much business out there.  What are homes selling for in the neighborhood today?  If there aren’t at least six comparables of recent sales in the last 3 months (Forget about 6) then your deal probably will not be funded! I use several websites to find out this value.

  1. www.hvasoftware.com This system will pull comparables from eppraisals.com, cyberhomes.com and zillow DO NOT assume the value it comes up with is correct.  You then have to research each comp.  make sure its within a half mile to a mile of the home and the comps are within the last 6 months!
  2. www.trulia.com Type in the address then review the recently SOLD comparables
  3. www.realestate.yahoo.com
  4. www.propertyshark.com This is a GREAT tool because you can give it specific parameters.

When reviewing your comparables, if there were many short sales and foreclosures in the area you will know because of the large difference in price.  You may need to review property shark for each comparable and look at the title history.  With this you can tell weather the last sale was a short sale or foreclosure.

B.  I normally provide my lenders with a market analysis also.  You can get this from www.cyberhomes.com

C. With the popularity of YouTube now besides pics of the home, to get hard money funded you should also provide at least a minute of YouTube video of the property and the neighborhood.  I recommend owning a flip video.  Just make sure you record the neighborhood, the outside and inside of the home.  Be careful not to go too fast or too slow on your recording.  Just the facts, slow enough for someone to see what you see.  The eye is quicker than the camera so the camera takes another half a second to see what you see.

D.  Last but not least create your executive summary.  This should be no more than two pages and include a summary of the property.  What you are looking for and a brief resume summary of your background.  Because so many investors have walked away from projects they really don’t want to lend to a newbie.  But if you are a newbie highlight experience that you have relating to the industry.

Last but not least…You want to gather your info then put it all in a neat little pkg.  Within the first paragraph of your executive summary you need to get out what you are looking for, how much time it will take you to return their money and a little bit about yourself.  Of course, you want to make sure they continue to read all of the details you have provided!  I hope this helps!

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