Presentation manuals are used in many businesses to help describe and sell products and services. The best manuals provide the greatest amount of information in as few pages as possible.
Your private money lender manual should satisfy both those that want only the highlights and those that like details as well. This manual can be sent your private money lender (PML) prospects by email or given to them in person.
Let’s take a brief look at what your manual should include:
- Cover Page:
This page should have your company name, address, phone number, websites, and a few words or a picture.
- About Us Page:
Here you need to talk about who you are, what you do and why, along with what sets you and your company apart from others.
- Testimonial from a current PML:
Even if you only have one, any testimonial from a private lender will carry a lot of weight.
- Testimonial from your banker:
Any testimonials from your banker as to your integrity and payment history will be a tremendous help.
- Reference Letters:
If you are unable to get testimonials then the next best thing is to get reference letters from others that know you well and have done business with you.
- Your Bio:
The bio should be fairly detailed and professionally written or edited. One or two pages is good.
- Financial Terms Sheet:
This sheet should include your financing terms for any type of deal you would like to do, first and second liens, buy and hold, flips, owner finance, including you funding ranges per deal.
- Page for loan structures and examples:
On this page you can provide information based on amortization periods and fixed vs balloon loans. Give an example of a buy and hold, flip, and second lien deal including loan amount, rate, amortization, payment and total interest earned.
- Page of information about your area:
List all the advantages of investing in your market area on this page.
- Why you are an expert page:
Here you should discuss why you and your company are the experts at what you are doing in your business.
- Description of your closing and purchase process:
Discuss each step of the purchase and closing process so they will know what to expect in the timeline.
- Definitions page for the terms “buy and hold” and “flip”:
A paragraph defining each is sufficient.
- Page listing documents provided with each loan:
You should list and explain items such as comps, assessment or spreadsheet of the deal, amortization schedule, note, deed of trust, and deed.
- Link to photos or videos of projects you have completed:
Provide a link to a webpage with photos and videos of any projects you have done. Make the link live so that it can be clicked if you are emailing the manual to someone.
The disclosure should discuss the risks of doing business, investing in real estate, and investing with you.
Covering all the above items will satisfy most private lenders and allow them to see that you know that you are the expert and organized in your business. Contact us if you would like more help putting together a presentation manual.