Some Basics

This is a recent response to an inquiry from an affiliate sign up on my webpage at http://www.privatemoneybank.com/ahertz

I have briefly answered your questions within the text of your email below (my answers in blue).
Even though you may hear that investor real estate financing depends upon the deal and not upon the investor, you will find that most private money wants to know your credit history as well. If they can choose between a multitude of applicants to loan to, they will almost always loan to the person that has no problem with guaranteeing the loan with their own personal backing. This ranges from a simple copy of a free credit report obtained online to a full blown Fannie Mae Form 1003 completely filled out and supplied to the lender. If you want to get a head start on the securitization of your loan, obtain a copy of this 1003 and begin filling it out ahead of time. I can supply you a copy to work on and save for submission so that you are that much further prepared. – Just ask me for it.

For private money lenders to take your project seriously, you must have it under contract first. You will find it very easy to attract funding for a great real estate deal. Your talent is to find the great deal and to get it under contract. My talent is to find the best funding for your project.

The first thing to establish is that this property will not be owner occupied.

The second thing to understand is that the funding will only go 65% of your purchase price. This is in line with today’s private money lender practices. Values have not stabilized enough to be anything other than conservative when establishing lending guidelines. Private Money Bank (PMB) is a program that acts as a matchmaker between private money sources and investor real estate deals. If you can get PMB to approve funding for your project, you can rest assured that you have a solid deal that has been reviewed and analyzed by some of the top professionals in the investor real estate world.

Here are four questions to keep in mind when you are getting your funding request package together;

• What is the property worth?

• How much do you need?

• Do you have any money or collateral to put into the deal? (If a friend will put up the money or collateral, pull the friend’s credit report.)

• What are you going to do with this loan / with the property? This is the back-end financial question. Can you refinance it if that is the plan?

Private money is interested in your exit strategy. They want to know that you have a way to either refinance or to sell.

The more funding deals you do with PMB, the easier it is to get funding. When you show our investors a history of recent successful round trip transactions, you establish credibility and move to the front of the line for interested lenders.

I want 100% financing including closing costs,- closing costs are not covered in a PMB loan

and no payments for 6 months. You can get a 6 month term and not pay principle – only up front points and monthly interest payments with a balloon at the end of 6 months.

I do not have a contract yet, and am wanting a lender to tell me what they will loan before I make my offers. Is this feasible? Private money lenders can only determine your loan parameters if they first have a real project to analyze. You must have a signed contract first.

Please send details about the lending process, how do you like to go about it?

Once you contact me with a real project, I qualify by getting documentation from you. These will include;

• Webform or PDF Application Filled Out and Faxed or Emailed In

• Fannie Mae 1003 Financial Statement

• Comps & Appraisals

• Title

• Closing Documents

• Escrow Instructions

• HUDs

• Promissory Notes

• Proof of Funds (Sourced and Seasoned)