What's an investor's package?
You've found a great real estate deal. Now you need some money. You talk to a few private lenders for the first time, but they don't take you seriously because you don't have your deal packaged well. When you're dealing with a new lender for the first time, it's a good idea to be able to provide investor's package or a credibility package. It's a well-structured document that provides all of the information that someone that would fund your deal would be interested in knowing.
What's in an investor's package?
A basic outline of the contents of an investor's package is presented below.
- Property Description
- Written Details - include the basic information you'd see on a property listing
- Notes - provide any additional helpful information (ex: link to google maps, zillow, ...)
- Presenter's Information
- Business Name
- Presenter's Name
- Business Address
- Web Site
- Funding Request
- Exit Plan - provide an explanation about how and when the loan will be repaid
- Purchase Price
- Rehab Costs
- Projected ARV (After Repair Value) - should be substantiated by a CMA
- Total Funds Needed
- Down Payment/Equity Injection
- Loan Amount Requested
- Loan-to-Value Calculation
- Projected Loan Payment
- Projected Rehab Duration
- Projected Timeline to Sell
- Projected Sale Price
- Projected Closing Costs
- Projected Profit
- Rehab/Construction Plan Description
- Materials and Labor cost breakdown for each plan item
- CMA (Comparative Market Analysis)
- Real Estate Experience (include closing statements, before & after pictures)