Getting Prepared for Private Money Funding

Deal or No Deal?

As your PMB, I can guesstimate your loan parameters based upon the initial information you provide me. 

1.  Do you have a deal under contract?

2.  Location (State) of Property

3.  Purchase Price (or offer)

4.  Rehab Estimate

5.  ARV (After Repair Value)

6.  Profit

7.  Savings ("Skin-in-the-Game")

8.  Credit Score

9.  REI Experience

10.  Exit strategy

This is our consultation phase. Based upon our preliminary loan cost analysis, we'll determine whether you have a great deal, good deal, or no deal. And if it's a 'no deal' we won't leave you hanging, together we'll get creative.

The Starting Line

We've garnered that the deal makes sense. Now, it's on to the pre-application package to be presented to the lender(s). Here's what we initially require for submission:

1.   An executed contract on the property.

2. Executed broker agreement

3.  Loan Application & Fee

4. Schedule of Real Estate Owned 

5. Zero Fraud Policy

6. State Verification of Entity

7.  Entity Operating Agreement

8.  Federal EIN Notice

9.  ID & SS Card of Guarantor

10.  Bank Statements

11.  Federal & State Tax Returns

12. Collateral DNA Report

Following submission, an official loan cost worksheet will be provided from the lender for borrower's signature.

The Finishing Line

After all documents have been submitted from borrower to the broker and loan officer, the loan package is then passed on to underwriting who approves for funding, if no additional documentation is required.  

Once the package reaches funding, the closing department prepares documents for legal review and closing, then sends the documents to the closing agent, and the lender wires funds to an escrow agent. 

A motivated seller gets paid, your preferred independent PMB ("HMK Investments Unlimited, LLC") gets paid, other services rendered are paid, and the remaining funds are held in escrow for draws on the rehabbing of property.

Deal Completed!  On to the Next...