An effective private lending credibility kit is often a real estate investor's ticket to the success for securing funding from a private lender.
If your credibility portfolio kit is compelling enough, you will have lenders flocking to your doorstep and you will be able to establish long lasting business relationships for future real estate transactions.
Creating an effective private lending credibility kit means avoiding the mistakes that could potentially burn bridges for future transactions as well as discourage private lenders from funding your current real estate venture.
When it comes to real estate, burning a bridge for good is serious business, so you want to try and avoid all of the mistakes that you can right from the get go.
Vague Cover Letter The cover letter in your credibility kit provides your first impression to the potential private lender.
If the lender cannot understand your purpose in the cover letter, they are certainly not going to be inclined to lend you money.
More so, a vague cover letter will make your private lending credibility kit look "not so credible," and more like the rest of the kits out there that are simply "run of the mill.
" Clarity wins the race here and makes your private lending credibility profile stand out from all of the others.
Generic Bio When you think about all of the real estate investors out there that are seeking private lending, writing a generic bio that resembles a resume is not going to make your private lending kit stand out from everyone else.
Chances are the prospective private lender will read a few words and then move on to someone or something else.
Conversational structure is the key to grabbing the lender's attention because he/she will feel like you are personally speaking to them.
Disorganized Credibility Kit Organization is one of the attributes of credibility and competence.
If your credibility kit is disorganized the lender will get frustrated and most likely toss your portfolio.
If you cannot organize your private lending credibility kit, then how are you going to manage a real estate transaction? Create a private lending credibility kit that leads the private lender and clearly demonstrates the location of the information he/she is seeking.
This will also indicate that you are a capable leader and pay attention to details.
Failure to Update Some real estate investors fail to keep their private lending credibility kit updated.
This will lead the lender to believe you have not recently accomplished anything related to real estate and that the information they are reading is "old hat.
" Updating means that you still have a pulse and are continually interested in your business and constantly gravitating toward long term goals.
No Credibility Kit Having no credibility kit and relying on your words to get you funding for your real estate transaction only complicates the situation.
Chances are the private lender will suspect you are trying to "BS" your way into the deal and you will lose all credibility and burn that bridge for good.
Providing the private lender with materials they can review at a later date will increase your chances of closing the deal as well as demonstrate to the lender that you are conscientious and serious about your business.