What does mean when a hard money lender asks for a Exeutive Summary, what goes in the summary, any order? A Example would be GREAT! Thank you everyone out there. Good Luck!
An executive summary is a brief business plan. What the lender is asking for is a written summary of what you are going to do with the property (How are you going to pay him back?)
You can do a search and pull up some examples over the internet.
I require an Executive Summary before I will submit a deal to a hard money lender. It needs to spell the deal out in detail. Remember they will be making the decision based on the paper work. By doing this I get fast decisions not always the decision that I want but they respond.
Rough Guide Line
John Doe
Phone Number
I would like to receive an equity based loan of $150,000 to purchase and rehab the property at 110 Main St, Louisville, CA. My plans for the property after the rehab is to market the property for resale at market value. An appraisal shows that the market value of the rehabbed property will be $250,000.
The Following is a breakdown of the cost involved.
Purchase price: $125,000
Rehab cost as estimated by a licensed contractor $25,000. This estimate is available upon request.
So in total I am requesting a loan for $150,000. The loan to value based on the after repaired value will be 60%.
A review of the comps used for the appraisal will show that the average time on the market is 38 days.
Comp 1 with basic data
Comp 2 with basic data
Comp # with basic data
Give a brief explanation of any other details that may be important. Income, rehab experience ect.
I have no idea! WHy not ask the lender?
[addsig]
An executive summary is a brief business plan. What the lender is asking for is a written summary of what you are going to do with the property (How are you going to pay him back?)
You can do a search and pull up some examples over the internet.
Roger
I require an Executive Summary before I will submit a deal to a hard money lender. It needs to spell the deal out in detail. Remember they will be making the decision based on the paper work. By doing this I get fast decisions not always the decision that I want but they respond.
Rough Guide Line
John Doe
Phone Number
I would like to receive an equity based loan of $150,000 to purchase and rehab the property at 110 Main St, Louisville, CA. My plans for the property after the rehab is to market the property for resale at market value. An appraisal shows that the market value of the rehabbed property will be $250,000.
The Following is a breakdown of the cost involved.
Purchase price: $125,000
Rehab cost as estimated by a licensed contractor $25,000. This estimate is available upon request.
So in total I am requesting a loan for $150,000. The loan to value based on the after repaired value will be 60%.
A review of the comps used for the appraisal will show that the average time on the market is 38 days.
Comp 1 with basic data
Comp 2 with basic data
Comp # with basic data
Give a brief explanation of any other details that may be important. Income, rehab experience ect.
John Doe.
In addition to the above suggestions, I would itemize the BENEFITS to the hard money lender. #1. short term #2. low risk #3 high ROR
The executive summary must catch the reader's interest, and make him want to read the Proposal.
I usually include an Executive Summary with my Short Sale Proposals.