When you’re filling your money bucket, being honest with lenders can make a huge difference in your loan and the options they offer!
1. Be Honest About Your Financial History
This may seem obvious, but make sure you’re honest with your lender.
Make sure you’re upfront and honest about your financial history with your lender. It should go without saying, but don’t try to hide a bankruptcy or that you defaulted on a loan before.
If you’re concerned about your financial history, trust us: It’s much worse to hide it and make the lender find out on their own (which they will).
Once they find out, it will be harder for you to get a loan. And if you do find a loan, your options are going to be severely limited—not just because of the history, but even more so because you hid important information.
Options are super important to your work as a real estate investor.
Options drive down the costs of loans. Anytime you pay less for money, the more money there’s going to be in your bucket.
2. Stick to Your Timeline to Build Trust with Your Lenders
Similarly, when you say you’re going to get a project done, get it done. Whether it’s a flip or a BRRRR, construct a solid timeline on the front end. This keeps you and your lender are on the same page.
It’s often a good idea to put in a bit of a cushion when talking to your lenders so that you don’t panic if there are minor delays in your project.
Lenders want to see honest people who are doing their best. Most lenders are happy to support investors who are upfront with them with more money, more funding, more options.
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