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» Building a Hard Money Loan Package - Executive Sum
One of the most difficult things for borrowers and brokers to create seems to be the Executive Summary. It's imposing name seems to indicate a formal document that might require the services of a professional constulant. Nothing could be farther from the truth. An Executive Summary is merely a summary of the 'story' behind the loan request you are making and an indication of what you are asking the lender to do. Now, that, at least from this writer's experience on the phone with quite literally thousands of callers, is something that every borrower wants and can tell easily and eagerly.
An executive summary should be anywhere from one paragraph to a page or so long. Good writing skills will help your case, so use spell check and consider your grammar carefully. Use bullets to list items, rather than creating run on sentences. Put things in order, such as:
- you bought the property
- you did this and that to it
- therefore it has increased in value
- now you need $xxx
- to accomplish xxx
- which you will complete in xxx timeframe
- at which point you will sell, refinance, or have another exit strategy
Basically, in an Executive Summary, you are writing a short story of the what was, what is, and what is going to be about the collateral property and the business that will support the monthly loan payments. Do not spend a lot of words talking about personal matters or financial troubles; unless they are solely responsible for the requirement of the hard money loan, they are parenthetical to your story and will not help you obtain a hard money loan. Stick to dates, facts, and values; stay focused. And proofread your summary before submission.
