There are three types of brokers when it comes to emailed loan requests:
The Deal Maker
This is the best personality type. S/he provides 5 brief deal points to give the private money lender a “deal at a glance:”
1. Property type (30,000sqft, mid 80’s, B Class building)
2. Location (reasonably specific to relate to submarket dynamics)
3. Borrower quality (Somewhat general is ok, but don’t mask the truth)
4. Borrower’s cash in deal (how much)
5. Reason for the loan/exit plan (Intentions for the property in the coming years—keep it simple for now)
(Be this broker!)
This is the best personality type. S/he provides 5 brief deal points to give the private money lender a “deal at a glance:”
1. Property type (30,000sqft, mid 80’s, B Class building)
2. Location (reasonably specific to relate to submarket dynamics)
3. Borrower quality (Somewhat general is ok, but don’t mask the truth)
4. Borrower’s cash in deal (how much)
5. Reason for the loan/exit plan (Intentions for the property in the coming years—keep it simple for now)
(Be this broker!)
The Amateur
The amateur makes a general loan request but leaves out key deal points for discussion. This forces the private money lender to follow up with several emails before giving a general answer. It is ok to be a legitimate beginner in the industry. We’ve all been there! If this is the case, leave a phone number because most credible private money lenders are happy to help you. You’ll get things done a lot faster this way, and you’ll receive free advice!
The amateur makes a general loan request but leaves out key deal points for discussion. This forces the private money lender to follow up with several emails before giving a general answer. It is ok to be a legitimate beginner in the industry. We’ve all been there! If this is the case, leave a phone number because most credible private money lenders are happy to help you. You’ll get things done a lot faster this way, and you’ll receive free advice!
The Slacker
Being lazy will not make deals happen. A Slacker simply sends a package of information to multiple private money lenders asking, “Is this something you think you can do?” …Uh…what? Now the lender has to sift through multiple documents and attachments to find all the deal points. S/he is also conscious that there are probably 5 other private money lenders competing for the same deal. Not the way to build a reputation as an productive deal maker with good communication skills. (Avoid being this broker)
Being lazy will not make deals happen. A Slacker simply sends a package of information to multiple private money lenders asking, “Is this something you think you can do?” …Uh…what? Now the lender has to sift through multiple documents and attachments to find all the deal points. S/he is also conscious that there are probably 5 other private money lenders competing for the same deal. Not the way to build a reputation as an productive deal maker with good communication skills. (Avoid being this broker)
If you are looking for a quick response, then strive to be like the The Deal Maker above. All successful closings begin with good communication and fluid information flow. Get to know your private money lenders and work with them to accomplish a mutually desired result in a way that’s most efficient for you and for them. Working together is how great business is done. Happy deal making!
