Episode Description
Are you an investor trying to figure out who are the best operators to invest with? In this episode of Chad’s Soapbox, host Chad Sutton discusses the importance of making a good impression with lenders when seeking financing for a business. He advises us to provide lenders with all the information they need to make the process easier and to make sure that lenders are regarded as the biggest investors when it comes to getting loans. By doing so, you can reduce the amount of objections lenders may have and ultimately increase their chances of getting a loan approved. Your lender is your biggest partner so tune in to learn more!
[00:01 - 01:19] Opening Segment
The importance of storytelling when pitching real estate investments to lenders
Using links to relevant information, presenting property specifics, and understanding local demographics
[01:20 - 09:00] How to Ace a Loan Presentation to a Lender
Going above and beyond with your presentation if you want to impress a lender
Provide them with specific information about the deal
Provide a 10-year pro forma showing assumptions and projections for the business
Analyze rent roll to build a template to show what can be achieved
Carry out rent comps to show comparability
Pulling sales comps to show that the property is overpriced
Model the debt part for the lender
Show monthly cash flow and cash management
[09:00 - 09:52] Closing Segment
Make sure your lender is regarded as the biggest investor
Provide them with the information they need to handle objections
Quotes:
"Your lender is your biggest investor." - Chad Sutton
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Real Estate Runway Podcast is all about alternative business and investment strategies to help you amplify life, and maximize wealth! Click here to find out more about the host, Chad Sutton.