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What To Include In An Investment Package

When you’re investing into real estate, there are a lot of things you need to do. One of the first things  is to raise capital to put deals together, and then present everything to your bank. This is called an investment package. This is something we put together on every deal we work on, and it basically outlines your project. Included in the package is a cover page and then an introduction. This goes over the specs of the project, what the plan is and other details about the project and the market demographics. We also put some news articles in to give context. Currently, we have an increased demand because of the increased market. Things are skyrocketing in demand, especially now at the beginning of 2022. 

Benefits of Owning Real Estate 

There are some benefits of owning real estate, which include recession resistance, stabilized assets, a lot of tax benefits, and predictable income. Then we have some market information of why this market is so strong depending on where the deal is located. Outlining all of this information dramatically helps your bank see what the deal actually is, where it’s located, and the dynamics of everything involved. We also include aerial maps of the location and a project name. We add pictures of different commercial buildings, employers, and neighborhood demographics. There is information about the workforce, the opportunity for a bank to get into the deal, and what amenities we’re going to have with the project, renovations, and site plans. All these things make it easy for a bank, or anyone you’re looking to aggregate capital from, to get a clear vision of where the project is headed and the value of it. That’s why we have proforma in the investment package as well. 

This Is Important For Your Bank To See

Additionally, we have income statements of what we think the income and expenses are going to be. This is important for your bank as well because they see this income and expense sheet. Usually you have a net operating income of what you’re projecting the project to have. Maybe it’s an existing project where you have access to historic income and expenses and can provide this information to the bank. Then you can figure out what the loan amount should be for your project and that will give you a better picture of what the property is worth. We also put in case studies and things like that just to show track record and experience. These are the types of packages that are really good to have. 

This Makes a Huge Difference

A lot of people don’t even take the time to put a package together to present to their lender. This is something that makes a huge difference. It makes it transparent and much easier for your lender to make a decision on all of the specs, details, income rents, proforma, rent roll, and more. It also makes it easier for your bank to put a term sheet together. Once your bank can put a term sheet together, the financing will come together a lot faster. It’s important that you provide your bank with all of this information. It’s going to help you move faster, and your banks or lenders will be more confident in your abilities and impressed with what you’re doing if you have your game together. So go out there and start making deals happen.

Creating an investment package will help the bank see where your project is going.

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