The Right Way to Get a Hard Money Loan

So, you just got that great bank-owned property under contract and now you need a loan to buy, fix and flip. You went to three hard money lenders and they turned you down. Why? Because you STINK at selling your deal. That’s right, you need to learn how to properly SELL your deal to a lender.

Start by getting a binder from your local office supply store, with a set of tabs you can print on. Mark the tabs on these sections:

Here are the items you need in each section:

About Me. This section should contain an FNMA 1003 loan application, a copy of your credit report, a copy of your driver’s license and a brief resume of your experience. If you have no experience, then at least put a list of books and seminars you’ve been through. A list of references would help, too.

Purchase Contract. A copy of the purchase contract with addendums should go here.

Appraisal. Ideally an appraisal, but at least a real estate broker BPO (broker’s price opinion) should go here.

Insurance Binder. A copy of a commitment for proof of insurance from your insurance provider goes here.

Title Commitment. A copy of the title commitment should go here.

Photos. Detailed photos in and outside of the property, IN COLOR. Don’t skimp on this step!

Inspection. Have a professional inspection done on the property and put his report here.

Repair Estimate. A repair estimate from a LICENSED general contract (copy of his license, too) should go here.

Numbers. Insert a spreadsheet of the breakdown of the numbers. Your purchase costs, closing costs, holding costs, repairs, realtor fees, etc.

Timeline. A diagram of the outline of your construction project should go here.

Now, you’ve got a deal that you can SELL. Go out and approach your hard money lender and see if your results are different!

By the way, if a couple of hard money lenders still turn you down, you might want to rethink your deal and figure out where it is lacking.


About the Author Attorney William Bronchick

Attorney William ("Bill") Bronchick, host of, has authored six best-selling books and is sought nationwide for his 25+ years of real estate and legal knowledge. He has been interviewed by numerous media outlets, such as CNBC, TIME Magazine, USA Today, Investor Business Daily, Forbes, and the LA Times, to name a few. William Bronchick is the co-founder and past President of the Colorado Association of Real Estate Investors and the Executive Director and founder of the College of American Real Estate Investors. Click on the "About" link above for more information on William Bronchick.

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