Private Lending for Real Estate Investors: How to Build a Credibility Kit That Makes You Stand Out From Other Investors

If you are a real estate investor in the post-credit bubble market you are acutely aware that traditional sources of loans and money are no longer available.  The only option to get money to buy real estate investments is to start and develop your own private lending program.

One of the key elements to getting private lenders to invest in your real estate investing business is to develop and build a strong reputation as someone who is trustworthy and experienced as a real estate investor.  One of the ways you can achieve this is through a creditability kit.

A credibility kit is usually a written document that tells a story about who you are, your real estate investing or business experience and why you have special knowledge and skills in the area of real estate investing.

Everyone’s credibility kit will be different, but I have listed a number of items that you may want to consider including in your credibility kit.  
 

• Cover Letter: A personalized cover letter briefly explaining who you are including your name, address, phone, fax numbers and email address or other contact information.   If you have company or legal entity who is the borrower you need to list the company and principals
• Bio or Resume: A biography about you with achievements even if not real estate investing related.   This may include your background, years in business, years in community, educational background, hobbies and organizations you belong would add credibility to your background.
• Your Team: Write up information about other people and staff in your company including outside vendors you use on regular basis.
• Mission Statement: Lay out your mission statement and what motivates and energies you about real estate investing.
• Certificates and Bootcamps: Memberships, associations, recognition, awards, licenses, and any real estate investing bootcamps, seminars, etc. that you have attended.
• Testimonials: From buyers, sellers, investors, CPA, attorney, banker, insurance agent, title company, or other private lenders.   Pictures with celebrities also add some real credibility.
• Letters of recommendation: Your title company, real estate attorney, banker, insurance agent, CPA or other professionals.   The banker's letter doesn't have to go into your credit or finances.  A simple letter saying that you have been a customer of the bank since XXXX and are a customer in good standing will do.
• Professional Real Estate Licenses: Do you have a business license? Mortgage brokers license? Real estate broker or agent license?
• Better Business Bureau: Are you a member of the Better Business Bureau, Real Estate Investor Association, Chamber of Commerce, and Rotary?  Included all of them in your credibility kit.
• Press Write-Ups: Stories about you, your company, your community service, etc. and articles you have had published in print or online.
• Actual Deals: Show a number of buy/sell transaction perhaps with how much your private lender made or could have made on the deal.  Photos are an added touch.
• Marketing Examples: Do you have a website – if so – included a few pages to should what it looks like and what sort of information you have on the site.  If the site has Page Rank or Aleza rating these should also be included.  Include copies of all your marketing pieces including flyers, post cards, yellow pages, post-it notes ect..

Your credibility kit doesn't have to be something you pay a fortune to have created.  It doesn't need to be professionally printed on glossy paper.  It simply has to show people your experience and knowledge, and to help them to decide to invest with you.

Download your FREE eBook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders"  and learn how to fund your real estate deals with Private Lenders!

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