How to Get Any Lender to Fund Your Deal (7 Step Process)

hey everyone they're bigger pockets my name is Brandon Turner co-host of the bigger pockets podcast and today I wanted to put together this video to walk through the idea of how to get funding on your deals look I know that it can be tough sometimes to get a bank to say yes to you I've experienced a ton of that in my life where I go to the bank to get alone and the banker just says no after no after no I get just get lots of noes and that can be really hard to build a real estate portfolio when all you do is hear no is over and over and over so today we're talking about the 7 steps that you need to get lenders to fund your real estate deals so you hear a yes instead of a no in kind of a weird way I could even say that this is almost like a guarantee now I'm not guaranteeing that you're gonna get yes but what I mean by that is a bank wants to lend money they are in the business of lending money that's how they make money is by lending money therefore they want to do it they want to lend the money out so you just have to be able to crack their code in other words it's like a combination that's why I got a kind of a combination picture here if you get the right combination in the safe is gonna open up and you'll have unlimited funding you'll never have a problem but you've got to get the combination rights what we're talking about today is a combination how do you open that correctly somebody give you a lot of kind of tools tips some numbers some just like you know things that every investor should know like debt-to-income loan to loan to value all those things so by the end of this little video here you will be an expert on how to get a loan approved at any bank credit union or you know a mortgage company so that's what we're talking about today and I'm glad you guys are here now normally I do these videos once a week I do a live version of sort of what this is every week at BiggerPockets on Wednesdays it's called the Wednesday webinar that's a terrible name but whatever we'll call that today the Wednesday webinar because I do them live every Wednesday and so this is very similar to what I do in Wednesdays so if you're enjoying if you enjoy this style of learning I invite you to come join me this coming Wednesday and every Wednesday going forward where we do live webinars on everything related from the getting funding how to find deals even in a competitive market how to build a plan to you make a million dollars in real estate how do you house HACC how do you do the Bur strategy or or rental property how do you analyze deals all that stuff every week we talk about a different topic so BiggerPockets comms webinar I would love to see you there I love hanging out and talk about real estate and telling you kind of what I know so again you can sign up at BiggerPockets concise webinar so now with no further ado let's get into this the seven steps you need to get lenders to fund your real estate deals all right so what are we talking about today specifically we're going to talk about why banks say no we'll talk about seven steps to hearing a yes like what does it take where those seven steps so that you always get a yes and then we're gonna bout the the six C's of a perfect loan proposal and then we'll talk about some bigger pockets tools that can help you with that with that proposal and so just a few that's kind of the four main topics today so hang tight now before we get too deep into this so let me tell you a little bit about who we are in case you came across this video on YouTube or something you don't know anything about us BiggerPockets comm is a real estate investing social network marketplace and information hub in other words we're a social network like Facebook Twitter or anything like that but with less cat videos less politics and more real estate success driven content and community it's pretty awesome we're also a marketplace people buy sell deals together they do business they find partners they find lenders all on the social network and then we're an information hub probably what we're best known for just unbelievably amounts of information for free like blog post webinars we've got the biggest podcast in the world for real estate we've got again weekly webinars we've got all sorts of good stuff there so again we're an information hub social network and a marketplace all right now a little bit about me my name is Brandon Turner for those who do not listen to the BiggerPockets podcast I have been the co-host now since the beginning Oh three years ago was it maybe even almost more than that coming up on four years I think now here on the podcast we've done 190 some episodes up to this date and I'm also an active real estate investor I've got a little 450 units right now mostly small multifamily properties and of some single-family houses mixed in there I'm the author of several books including the book on investing with no and low money down and the book on rental property investing in the book on managing rental properties you can pick them up at BiggerPockets that come to a store and and here's where it's important here's important part I once worked as a personal banker in a major bank one of the largest banks in the country I was a personal banker which means I was at the branch and I would help people get loans and that's what I did for a living for about a year hated that job but I learned a lot of stuff in there and some kind of like how a banker thinks how does an underwriter think how does all that work and that's what I learned and that's what I'm teaching you guys today is how did how did I say yes why did I choose to say yes to loans and no to other ones so I want to ask you this question going to this thing I think it's important to have this kind of preface how many deals would you buy if money was not an issue how many deals would you buy right now if you can get unlimited funding how long did you buy would you buy one deal a month one day a year like what's your goal here if you could just buy whatever you wanted you can get funding for all of it what would you buy and I ask that because this is the truth is you can do that you can actually you can buy as much as you want if you know how to crack that code if you know how to crack that code so that's what we're talking about today so if you're excited if you want to buy real estate you want to get into this thing or build your portfolio bigger or grow let's get into that so first of all why does a bank say no now I kind of touched on this a little bit earlier and it's the idea of the combination lock and when you have that little combination lock you've got to turn it correctly and only the right combination is going to get them to open it up and right now you don't have your hearing know you don't have you haven't cracked the bankers code you don't know that combination yet so that if you can get through that you're going to hear a yes now this is like not so secret secret about real estate like I said earlier bankers wanna lend money and so you just have to be able to crack that code now before I go on to the actual seven steps let me tell you guys a little bit about how the banks work in terms of lending money so here's kind of a big picture of how this works first of all at a bank you go talk to a banker they are literally nothing but sales people came out literally but they're not much other than sales people their job is to just get applications get loan applications and and kind of do the paperwork and kind of filter that stuff the real magic is behind the scenes with the underwriter the underwriter is somebody whose job is paid to all the facts and figures and make it line up with their code with their set of requirements and if it lines up the underwriter then says yes we'll approve this and then you can go ahead and the banker will say yes you're approved but the underwriter is really one you have to convince so you can tell sob stories to the banker all day long but if it doesn't meet the underwriters code the the under the bank's rules of what they will lend on what they won't then you're not going to get your loan approved so today we're talking about how do you get that underwriter even more than the banker how do you get the underwriter to say yes and where does the underwriter get their rules from well some of them are just Bank policies but some of them are government rules as well some of some banks use government money to lend out and some baek's lend their own money out that would be like a conventional loan versus a portfolio loan but either way they have rules that you have to abide by so that's what we're talking about today so let's get into that the seven steps needed to get lenders to fund your real estate deals number one first question to ask yourself do you have a deal now here this might come to a shock to you but banks don't want to lose money banks really don't want to lose money so do you have a good property that's that's actually a good deal now how do we know that well first of all if you're looking at rental properties does it cashflow a bank is likely not going to want to lend on an investment property if it doesn't provide any cash flow next loan devalue loan to value no loan to value is basically the amount of your loan divided by the value of the property the loan amount divided by the value property so for example let's say the value of a property was $100,000 it was worth a hundred so you're alone to value is whatever your loan amount let's say seventy thousand seventy thousand divided by a hundred thousand that would be a seventy percent loan to value now every bank has a different loan to value that they will do now one thing it gets a little bit confusing here but stick with me even though a bank says their loan to value that they'll lend on might be will say eighty percent let's say they'll say you know we'll go 80 percent loan to value really what they'll likely do if you're buying the property is going to be loan to purchase price and value now what I mean by that is you can't usually go out and find a house that's worth $100,000 get it under contract and buy it for 50,000 and then say hey I want you to fund the whole deal they're going to say nope you pay 50 it's worth 50 and then they'll only give you whatever maybe 70 percent of that 50 now if you're refinancing the property which means you already owned it and you're just trying to get a brand-new loan to pay off the old loan in that case then they'll they'll look at the loan to value the actual the actual value of the property now supposedly the value and the purchase price it should be the same but in all reality they're not always but especially when you're hunting for good deals like you and I are doing so anyway to go back to that talk to your banker and ask them what loan to value do you lend on you can use that exact phrase what loan to value will you lend and they will tell you oh yeah 70 percent or this loan will go 80 percent will go 97 percent on this one you know Bank of America has a home loan right now that'll go 97 percent loan to value FHA is a ninety six and a half percent loan to value in other words they are asking you to put in three and a half percent down payment a lot of times refinances on investment properties are 70 percent to 80 percent loan to value a hard money lender typically once sixty percent loan to value so that's an important number to understand about loan to value is alright secondly you know the first one was what we talked about how do you have a deal so is the property a good deals you have equity in it actually before I go on to number two let me say this let's just say to give you an example let's say you found a property that was worth $200,000 and you were able to very intelligently because you're really good at making good offers and you you know you found a diamond in the rough you would able to buy it for a hundred and twenty thousand dollars it's going to be a lot easier for you to get a loan on that than it is if you were to find that $200,000 property for $200,000 right so again that's why the better deal you have the more the lower loan to value ratio or the more equity you have the more chance you'll be able to get a loan but again that's just a number that you can ask any bank what loan-to-value do you do alright so number two is this a property they'll even lend on so part of the combination that we're dealing with here is some banks won't lend on certain types of property I know it might sound obvious but a lot of people will go to the wrong bake they'll say hey I want to buy this single-family else in the bank might you know say after a while hey we don't do single-family houses or you know we have a limit of $300,000 we don't do anything below that or we have a maximum of $250,000 we don't do anything above that so you got to make sure that the property itself matches what they lend on oh no we don't do commercial property we don't do multifamily we don't do single-family we don't do whatever all right so is the property something that they're going to lend on so look at property type single-family multifamily commercial mobile home probably locations some banks won't lend in other areas like you know hey I got this property over in I don't know Utah and I live in Washington you know can you lend on that no we don't lend in that location so talk about where they lend at property condition this is huge most banks don't like lending on properties and nasty conditions they only want to lend on good properties that are in good condition now this can be really hard when you know investors like you and I want to go and find deals a lot of times those deals are nasty they smell disgusting their carpets bad too and peed on by million cats and the cat lady threw up on the carpet and all that weird stuff right the banks not gonna want to lend on that property and so a lot of times what I do is all buy a property using like private money for example all I've met people in bigger pockets who I've built relationships with they'll lend the money on the purchase then I'll fix the property up then I'll go and refinance it with a bank later on now that's where that loan-to-value comes in handy let me give an example so I bought a property that I paid $70,000 for it I didn't have the money for it the 70 grand and no bank would give me a loan because it was in too crappy condition so I borrowed $70,000 plus actually another 15 or so for rehab from another BiggerPockets member from somebody I met on the site that we built a relationship with she funded that whole entire deal then I went to the bank later and got it appraised it appraised for almost a hundred and fifty thousand dollars well guess what the bank told me they'll give me 70% of the loan to value so I took 70 percent of one hundred fifty thousand and that was what at 105 is that sound right 150 yeah 105 so they gave me a loan for a little over a hundred it was like a hundred and three I think it's what my loan ended up being and I got back the entire private lenders money I gave paid him back completely I got my own money back I put in a but for repairs on I got all that back and now I had a nice long 30-year fixed mortgage because they did a 70 percent loan to value on a nice property so again property type probably location probably condition and then loan amount loan amount such as uh you know some banks like I said earlier they won't lend anything more than 250 or under 250 or over a million or under a million everybody's got their loan amount what they want to do what I run into a lot of times is banks because I live in a lower value area a lot of times I go to a bank and I want to lend on this forty thousand dollar deal and they're like oh yeah we don't do anything that low because it's just not worth it for the bank to get involved in these forty or thirty thousand dollar deals for those kind of things typically small local community banks are easier like I'm not going to go to the big huge banks Wells Fargo Bank of America u.s. bank to get a twenty five thousand dollar mortgage it's just not worth it for them they probably won't do it maybe they will but probably not instead I'm going to go to like a local community bank that maybe has a half-dozen branches alright moving on to number three so we talked about the property itself but now let's talk about you number three are you a solid bet because yes I know the bank only like they care about the property they want to make sure the property's gonna support itself and that you're not whatever but ultimately you're the kind of person that they're lending the money to you to you as a person so are you a solid bet so do you have good income or the ability to repay that loan now if you're buying a big multi-family property like an apartment complex that's you know millions of dollars you can't personally repay that every month because you don't have the money so they're gonna say does the property is that is a property make enough income and do you have enough experience to manage that property but they're gonna want to know make sure that there's good income next debt-to-income this is another one of those ratios right so we're into a little math here debt to income and anytime you see that - it means like draw slash there so debt divided by income so if your total monthly debt right now if your total monthly debt we'll say was like your monthly minimum payments was five thousand dollars a month that's what all your loan payments are combined and you make ten thousand dollars a month that's five thousand divided by ten thousand is fifty percent your debt to income ratio is fifty percent now most been don't that usually have a number here like 42 percent 50% 53 percent whatever they have a number that they care about for your debt-to-income and they don't want to be higher than that this is especially true in buying your own primary residence your own house usually you know they don't want you to go over a certain percentage for that debt-to-income a third experience what kind of experience you have again if you're buying a single-family house maybe for yourself to live in this might not be as big of a deal if you're buying an investment property they might care a little more you know have you been a landlord before if you've never been a landlord they might not let you apply any of the income you're getting from the property until you've been a landlord for a couple years which is a really really really good reason why you should just go out and be a landlord now like buy something that's a landlord so it's two years from now you'll have that experience that you can then put on the on the books but yeah what's your experience look like next credit score most banks have a minimum credit score if you got a six hundred they want 620 they'll just deny you because you don't meet their credit score requirement and recent credit changes you want you know I when I were to the bank I used to approve loans for people and big or deny them right so let's say I was going to issue a $40,000 home equity line of credit they come in the day to go get it and all of a sudden the underwriters freaking out because the day before that person went and spent 30 grand on furniture or they bought a new car because they were all excited about their in their loan and that just actually destroyed their chance to get in the loan that would happen because recent credit changes can hurt your ability so if you're going to get a loan don't go and get a bunch of new debt all right number four will the bank feel secure is the main kind of feel secure in other words if something went wrong are they going to be okay so first of all do you have cash reserves most lenders want to see most banks want to see you have at least six months of pity payments which is your principal and interest payment every month which is like your mortgage payment your taxes and insurance piti piti they want to see six months of that so if your mortgage payment and taxes and insurance is $500 a month for your property they want to see you have three grand for that property if it's $1,000 a month they want you to have six grand just in reserves that's it's kind of just a rule of thumb but most banks like secondly the bank wants to make sure they have collateral in other words if they were forced to take the property back if you didn't pay your bills and they had to come take the property are they gonna have collateral that kind of ties in earlier what we talked about with the equity and that we want they want to make sure that you have a loan to value that works for them the reason they have that is because they want to make sure they have collateral so they're going to make you pledge the property usually when you're getting alone all right moving on number five how professional are you like how how do you present yourself not just how you look I'm saying like but how do you present the deal and like but we'll go the deal later actually so first of all how do you how do you talk how do you approach them imagine this imagine you walk in in in nasty clothes and you go up to the bank rebug yeah I want to get a loan man get get a loan Chris you're knockin like oh I'm sorry we're actually out of money sorry try next door right so how do you talk how do you present yourself how do you look you know when you when you walk in there are you clear and confident how do you communicate do you have your your knowledge like you know what you're doing or are you just in there shy like I don't know because ultimately the banker the busy guy they get a lot of deals that they can fund they don't want to deal people if they don't if they assume the person is an idiot and isn't gonna be able to do the deal they don't want to waste time with you but the more confident you are the more they'll wanna waste time with you I number sent six how about your loan proposal so we talked about you how are you like look but what about your loan proposal like is it professional the way you present the deal itself so to talk about that I put together something called the six C's of a loan of the perfect loan that's a weird phrase there the six C's of the perfect loan presentation the six C's of the perfect loan presentation so number one your loan presentation when you apply for a loan you need to apply with confidence meaning you need to know your numbers like the back of your hand yeah we missed a banker this property I'm going to be buying it for one hundred and seventy five thousand dollars this property will produce exactly four thousand five hundred and fifty five dollars a month in cash flow I expect to have forty thousand dollars in equity and my loan value will be sixty three percent now that is a confident person right because I know their numbers are confident in what they're doing secondly clarity is it clear like I've you presented like instead handing them a stack of papers and saying here you go I think there's I think it's a good deal but I don't know it's in there somewhere you had to be clear about it so I always put together like a one-page summary of what I'm doing very clear this is what the property is this is what the numbers are this is what I need from you very clear three concise like I said I usually put a one-page like summer in the front and then I put a little packet that's very easy to flip through even with a little like like little like what they called little uh I don't know folder dividers or whatever to help but uh it's concise I make it very I don't give them a stack of a box of junk paper to look through and you know I think my tax returns are in here somewhere I don't know we'll Thelma put all our stuff in this big box once every decade and you can dig through it right that's not concise you give them some concise I don't know who Thelma is alright convenient is it convenient you have convenience in how you present it in other words are you going to make them dig through lots of information were you going to make it really convenient give them exactly what they need when they ask for something you give to them right away when they will ask you to fill out a loan application do you fill it all fully so they don't the track you down later you know I would say actually the reason most probably the number one reason banks get denied is probably lack of convenience bankers are lazy they would rather go with the most easy loans they can and they were going to ignore and deny the ones that are or that are not convenient so the more convenient you can make for the banker the better number five creativity do you have a little bit of creativity and how you put the deal together now this is kind of a bonus item here but the more creative you can make your presentation the better like look what I said last time I did like or mail last time but one of the reason times I got alone I went and test staples and got one of those like paper binder holders it's like a clear cover and you can put papers inside of it it makes it look really nice like a presentation I got one of those I put the one page in the front of it and then I put little like dividers in between with little like folder things and it was also nice and and very creative and made it so easy for the person that stood out of all the other loans that they were working on it really stood out and so it was very creative and ended up getting two loans approved that day one for my five Plex and one for my 24 unit property and lastly complete I just added this one it used to be the five C's of a perfect loan now it's six but number number six complete in other words are you leaving stuff out are you hiding stuff are you making it difficult for the banker to get all information you need like be really really thorough on how you give them information be very complete so they don't have to ask you again and again and again again the main reason that people look at their loans approved because bankers are lazy so if you want to make it as easy as possible give them all the information they need now if you do everything we just talked about like you know all the debt-to-income you crack their code and you present it well with these succeeds you're gonna have a much better time now I will say this you guys if you want to know more about kind of my process for this the five C's because I got a USB five I just didn't have complete in there but the you can download this free ebook that I put together there's no opt-in or anything I just a free gift just for coming to this video or watching this video go to bigger pockets that comes such five Cs bigger pockets that comes such five Cs the number five the letter C is in cookie and the S is in Sam so just a free little gift for you there now one way you can do this and I want to mention this is using the bigger pockets analysis calculator the bigger pockets analysis calculators what we have is a burger calculator for doing by rehab run tree financial or peat properties bur we've got a rental property calculator we've got a whole selling calculator and a fix and flip calculator now the reason these are hope powerful is because not just the numbers some numbers help a lot and we'll walk through a deal here right now I'll kind of show you what they does but specifically it's helpful because you can present it on like a one-page PDF that gives you a nice summary of all the numbers it makes it very confident clear concise convenient creative and complete and that's why as we put that put together these calculators we designed them to be to match all of these six C's we made them to be exactly what a banker would want to see so let me go ahead and pull up kind of what we're looking at here so let's go ahead and do it together I'm gonna go ahead and start an analysis and we'll go find us a deal to analyze so you know we can do a fix and flip we do a rental property we can do a borough a wholesale while we do a rental property here today so I'm going to flash over here to realtor.com now there's a lot of ways you can go to look for deals it's just one place so we're going to start here and now don't be shocked by the prices I'm listing them lowest to highest so we can go you know the highest price houses in my area which are about 750,000 or 450 or go Louis let's go to the cheap cheap ones just for the fun of it in fact actually why don't we go over to multifamily that might be fun go lay that and look for all the multi families in my areas so here's some multi oh let's try that again multi family see if it reloads there we go alright so here's some properties here that looks like something over on State Street something over on H Street not a big fan of that neighborhood this one looks maybe a decent neighborhood West markets alright D Street it's okay now F again not a big fan F East market not great this one might be decent this property right here could be something worth analyzing maybe I actually put an offer on this one just recently so why don't we go ahead together and just for the heck of it why don't we look at this property right here now you know that's uh me too much I can just tell it's gonna be way too much I don't know I guess it really matter let's go ahead and do this one then this is a an excellent cash-on-cash return investment six Plex some updating done all units have a nice city view unit consists of five a large one bedrooms in one studio and a coin-op laundry properties on well-maintained solid rental history with consistent positive cash flow well we'll see so we're going to analyze this property together over here so the address of this one was 210 East Fifth Street let's see six Plex that's where to call it now let me explain real quick how this works but the calculator is really simple it actually just three pages one two and three we're going to go through enter everything I'm not going to split every single bit of how I'm doing this because we don't have a lot of time here I'm going to kind of rush through it show you how fast these actually can be done so let's go ahead and put a project property address of east v city of Aberdeen Washington property taxes if you want to find that out you can look at your county records you can also look at these little question mark things hover over and they'll teach you how to find each each item as you go through the calculator but for me I'm just going to go ahead and look on here taxes should be listed somewhere here on realtor coms page and if not doesn't look like it is okay so we're gonna go over to the the county records Grays Harbor County Assessors page and I'm going to go ahead and actually look it up so 210 East 5th here's our property right here it's owned by Richard tax information looks like taxes were 20 to 60 this year but last year there 24 they went down interesting but he's happy about that so I'm going to pump that in there and the less number if I want to put that in I don't have to property picture I want to do that let's do that let's go take a quick picture of this and we'll go ahead and drag that in from here sales description I usually just like to use whatever the realtor wrote that usually works for me and that's it for page one everyone feeling comfortable at this so then we go to page two how much were you purchasing it for well they're asking 162 I don't want to pay full price what if I offer them 150 150 thousand what's it worth - fixed up probably above what they're asking it doesn't need much work it looks like to buy the thing it's gonna cost you some closing cost again if you want to know how much how to do any of these fields you can just hover over the question marks and we teach you I don't think it needs a lot of work but maybe we'll put in ten thousand dollars because there's always something on these properties now when I buy the property what do I want to do I want to probably put a downpayment down so why don't we do a I don't know 25 percent down payment we'll try that out at maybe five percent I'm not going to worry about this stuff right now I'm trying to get through this amortized over a thirty year we'll go twenty-five year mortgage on a property like this that's it for page two nine page three how much you're going to rent this for well unit a you know we can look here and see if they tell us the information they probably won't and if they don't we have a few options we can with another one bedroom so we can look up what I would typically do is go to Craigslist and find out what similar properties are I just know in this area one bedrooms going to go for about five hundred so unit a B C and D and E are all five hundred I'm gonna say and F is a studio they said so 500 500 500 now I could have just put one big number in here but I want to make it look a little prettier at the end and the studio is probably 450 so that's typical for this area then we got down below that other income they did say there was a laundry machine we don't know how much that is but let's just guess 75 bucks a month right now we can adjust that later then we got what are our expenses now the tenants typically pay their electricity but there's probably some hall lighting or something like that so I'll save 75 bucks for that water sewer garbage I got to pay for that this area probably look about 200 bucks a month for that if you don't know you can contact hover over the question mark here and teaches you but you can hover talk to any of those companies like talk to the water department talk to the sewer department if they're separate if I have PMI which you don't as it is hover over it garbage I'm going to guess probably 100 bucks a month for this place insurance I'll probably about 150 bucks a month on here I don't think I'll have any other I mean maybe lawn care I'm have to take care of lawn care so maybe on average I'm pry a virgin about 50 bucks a month for that and then we got vacancy rate you know probably sitting about 5% repairs and maintenance and capex I usually do about and between 5lb 5% each 151 for maintenance hundred 51 for capital expenditures these are big ticket items like refrigerators stuff like that if you don't know hover over we teach you more all about it I'm not going to manage it myself I'm at a higher property manager for about 10% of the rent I might be able to get that actually down to at 9% and then what do I think the future is going to do I can leave these all blank if I want but I'm just going to go ahead and say 2% income growth 2% property value 2% expense growth and when I sell the property someday I'll pay about 9% in fees and that's it so total this takes about three four five minutes to do definitely under five minutes you can analyze a deal at least get a pretty general number now of course today we're talking about how to get a loan approves now I think this is important because we talked about in order to loan approved you got to have a good deal now at these numbers this actually looks like a kind of a decent deal I mean look what we're looking at $800 a month in cash flow on a six Plex that's 150 per unit over that per unit cash on cash return of 20% cash on cash return on this property that doesn't seem too bad right so if these if these numbers are legit now I mean this is just definitely something I'm interested in I might go pursue this put an offer in if these numbers are true I'm going to go verify all of these later but just looking at it you know I can go down and see how much cash I'm gonna need so anyway the point is I got now my numbers I got graphs charts in all this so we talked about presenting those the six C's you know when you're presenting a deal if you go down here to more actions you can actually download a PDF report it takes just a second so I'll just click over here and explain well and while it's waiting takes about 10 seconds to generate but in here I can see all these things like income here's my income here's my expenses here the 50% rule says about this property in fact 50% rules pretty darn close to what the actual our estimate is for the cash flow kind of cool to see that down below I can see what the future one two three four ten 20 30 years out might look like I can look at some graphs and see if my equity growing over time now do you think a banker would appreciate seeing this I guess so here's what the report actually looks like here so this is a PDF report I can print this out and I do I use these all the time whenever I'm doing a loan or I'm presenting a loan refinance or purchase to a lender I always give them this whether it's a harbin lender a bank anybody I'm always giving them these so check this out it tells me all the pertinent Formation all the information the banker wants to know income expenses cash flow or cap rates or cash on cash return how much cash we're going to need this tells the banker that you know what you're doing it gives them all the numbers they want in a nice pretty format you've got graphs you've got all the numbers that they care about down below we can see the financial projections here we can see what the 50% rule is going to tell us we can see analysis over time again the bank now feels you are confident in your numbers because you walk in with this for something else you got a map on here I can even put it if I want to upload more photos they're going to put a ton of photos I don't know how many I think 20 or 30 photos you can add to this if you want to so what I typically would do and I'm going to present the deal to a lender is I'll fill out their loan application but I'll put this on top of it and I'll say here's the deal I'm trying to put together what do you think so that is kind of why I pursue that kind of a like well I guess why I do the numbers here every single time now if you're interested in using these calculators they are free for the first time five times you use them so if you're a new BiggerPockets member go on try them out play with it see what you think you want to use them unlimited you do have to be a bigger pockets pro member and of course if you're not one we can hook you up with one bigger pockets calm slash pro you can learn all about that so anyway let's get back to our slides here talking about the bigger pockets calculator we talked about that because we're talking about how to do the confidence clarity concise convenient creativity and complete that's what these reports will help you do so now we got moving on to number seven we got to hit number seven here of our seven steps if at first you don't succeed try try again right so you can try another Bank because not all banks are the same in fact I just interviewed a guy today on our bigger Podcast comes out here next week I think episode number 197 that guy story is just over and over and over persistence trying more and more banks trying one bank they turn him down try to another Bank they turned him down another bank turned him down another Bank after like seven eight nine banks he got it yes so you can try that as well everybody's got different rules different combinations you can try different ones you can also have portfolio lenders these are bankers that lend their own money not the government's money or maybe they do both but the loan it's a portfolio loan so usually these are small local community banks definitely look for that also you can ask for referrals from people from other lenders who are who are getting those kind of loans done so hey where'd you get your loan at I'm having trouble getting a loan getting a yes find out who's easy to work with remember I said earlier bankers tend to be lazy so yes you got to crack the code but you also give to impress your banker enough to make them actually want to do the work so if you're working with a crappy banker even if you get the code right you're gonna have a problem so ask the referrals of good bankers if you cannot get a loan for whatever reason because the combination doesn't work out right you're not all is lost there's still a lot of options in fact I wrote an entire book on it it's called the book on investing in real estate with no and low money down it's all about creative finance so if you want to know how to put the other deals without that check out that book you need at bigger pockets calm slash store or let me just explain a few ways you could use like seller financing I talked about my twenty-four unit apartment complex when nobody would give me a loan because I didn't have the you know personal experience be able to handle a big loan like that I didn't have the income I didn't have any of that stuff I use teller financing there's lease options there's home equity lines to credit you can use a partner all those things yeah partner here there's a lot of things you can do the point is if you really want it bad enough if you got a good enough deal if you've worked through all those seven steps you can you can get your loan approved especially if you get that combination figured out so guys that's all I got for you today that is this video on the seven steps needed to get lenders to fund your real estate deals I hope you enjoyed this video I hope you enjoyed learning you learn something good about it if you did do me a quick favor give me a thumbs up on this YouTube video if you enjoyed this video give me a thumbs up because it makes me feel good and it lets the YouTube know that this is a valuable video and they can show to more people have any questions jump in the BiggerPockets forums any time there are people so much more Intel and so much more experience than I will ever hope to be there in the forum's hanging out volunteering their time to answer questions and it's totally free hundred percent free to jump into the forums and just ask questions so BiggerPockets comm slash forums and lastly if you enjoyed learning here on this video we do this every week on BiggerPockets live we do these live videos a webinar so you can sign up at BiggerPockets comm slash webinar and we cover all sorts of different topics everything from creative finance to putting the other deals rentals flips wholesalers everything if you want to learn more about specific topics make sure you show up next week and every week you can sign up for next week's at BiggerPockets comm forward slash webinar all right guys thank you so much for being a part of this video and hanging out here I hope you learned a lot I will see you around the BiggerPockets community for bigger pockets like ah my name is Brandon signing off

Channel: BiggerPockets

Views: 316,010

Keywords: Real estate investing, BiggerPockets, Brandon Turner, Mortgage, Loans, Rental Properties, Investment Properties, Real Estate

Id: vM0S5OG8bYg

Length: 36min 49sec (2209 seconds)

Published: Thu Oct 13 2016