First-Time Clients: How to Increase Your Chances of Approval

Every client we have ever worked with was a first-time client at some point. They all had to convince us that partnering with them was a good idea. If you are planning to apply for your first Actium Partners loan, you will have to do the same thing. Don’t stress over it. Just make a good presentation and you will be fine.

As a token of our goodwill, we want to help by telling you how you can make a good first impression. Just know that first impressions are especially important with hard money. You might only get one opportunity to present your project to us. We want you to make the most of that opportunity.

A good portion of your presentation will consist of documentation. Here’s what we like to see:

Details of Your Investment

First off, details of the investment in question are a big plus. Since most of our loans go toward real estate projects, we will use that as an example. Let us say you are buying a piece of commercial real estate that you intend to subdivide and rent.

We would like to see all the details of your purchase. That includes the purchase contract, expected rental income, what the property is currently valued at, and so forth. Survey documents, inspection reports, photos of the property, any rehab estimates, etc. are also very much appreciated. The more details you provide, the better we can understand what you are looking to invest in.

Additional Collateral Information

If the property you are investing in will not act as its own collateral, we will need detailed information about whatever collateral you do plan to offer. Again, offering as much detail as possible can help your cause considerably. We will ultimately appraise the collateral for ourselves but knowing what we are looking at in advance can help move things along a bit faster.

Details of Your Financials

We don’t need to see information about your personal finances. But if you are buying a property from which you expect to derive income, property financials are a tremendous help. We like to know how much income the property currently generates along with estimates of future income-generating potential.

An Executive Summary

Finally, including an executive summary with all your documentation is very much appreciated. Far too often, borrowers submit mountains of documentation with very little explanation of the project itself. That only serves to slow down the approval process.

An executive summary tells us about the project itself. It tells us what you are hoping to accomplish, how you plan to accomplish it, and how a hard money loan from us can help you achieve your goals. In essence, the executive summary wraps everything up in a nice little package and helps us better understand what it is you are trying to do.

The executive summary may or may not include your exit strategy. We want to know what that strategy is because it helps us understand what you are trying to accomplish, but it doesn’t necessarily have to be written down in any type of formal document.

Most important to all of this is remembering that your presentation is your opportunity to convince us that your project is worth investing in. Rest assured that we appreciate looking at every opportunity that comes before us. But if your presentation doesn’t provide the information that we need to make a timely decision, your chances of being approved might be affected. Impress us with a good presentation and we will be in a much better position.