Having your documents ready is the easiest way to close faster. This is what we ask for on each loan type. Many investors hold property in an LLC for liability protection. If you borrow through one, the entity documents below apply.
Fix and flip loans
One-time documents
- Copy of your driver’s license
- Articles of organization for your LLC
- EIN letter from the IRS
- Operating agreement signed by all members, showing ownership percentages
- Certificate of good standing if the LLC is more than one year old
- Voided check for the account used for automatic payments
- Experienced borrowers: a list of your projects from the last 3 years, with settlement statements for the purchase and the sale of each property. If you kept a property as a rental, send the statement showing the refinance into long-term financing
For each deal
- Loan application
- Line-item rehab budget with a specific scope of work, for example “kitchen remodel with new cabinets and stone countertops” instead of “kitchen”. Your draws are paid against this budget
- Signed purchase contract, or the original settlement statement on a refinance
- Insurance agent’s name, phone and email
- Title company or closing attorney’s name, phone and email
Rental loans, long-term and short-term
One-time documents
- Copy of your driver’s license
- Articles of organization, EIN letter and signed operating agreement for your LLC
- Certificate of good standing if the LLC is more than one year old
- Voided check for automatic payments
- Two months of bank statements. We look for about six months of liquidity
For each deal
- Loan application
- Signed purchase contract, or the original settlement statement on a refinance
- The lease, for a long-term rental
- An income statement, for a short-term rental
- Insurance and title contacts
- A contact who can give the appraiser access to the property
- The appraisal report
New construction loans
One-time documents
- Copy of your driver’s license
- Articles of organization, EIN letter and signed operating agreement for your LLC
- Certificate of good standing if the LLC is more than one year old
- A list of your projects from the last 2 years, with settlement statements for each purchase and sale
- Voided check for automatic payments
- Personal financial statement
- Two months of bank statements showing reserves for interest, closing costs and a share of the construction budget
For each deal
- Loan application
- Line-item construction budget with a specific scope of work
- Drawings and plans
- General contractor’s license and workers’ compensation insurance
- A list of new construction projects the contractor has recently completed
- Insurance and title contacts
- A contact who can give the appraiser access to the site
In Massachusetts, closings are handled by attorneys, so the title contact is usually your closing attorney. Questions about any item? Call (954) 598-4564.