HOW WOULD A REAL ESTATE INVESTOR PUT TOGETHER A CONSTRUCTION LOAN REQUEST?

1. Loan Request

a brief outline

The property address, the loan amount request, what your purchase price is—just spells out all the details of the transaction, but it’s got to just be very simple.

subject property address purchase price construction loan amount how much money you have into the deal so far how much out of pocket capital are you going to put in length of the loan needed your exit strategy

2. Executive summary

that should be, who you are, what you do, what you’ve done and that kind of thing.

You have to spell out—yes I have experience building custom homes and selling them for profit, here’s the last five projects I’ve done

also include who the key partners are in the project

3. Some of the past projects that you’ve done, some nice pictures

4. A short bio on each of the partners

5. Contractor’s resume

6. Line item budget

some comparable sales for the product that you’re going to build

If you’re building a 3,000 square foot house, show them some comparable houses in the same square foot range

If you can put a package like that together it’s going to make the lender’s job very easy

And usually if you do that much legwork that means that you know what you’re doing and you’ve thought out the project and that just gets your foot in the door

The more complete you get it the faster the determination from the underwriter to see if the loan is viable