In the course of surfing the web and visiting real estate investment club meetings, seminars and conventions, you’ll probably hear about that mysterious item called a real estate investor credibility packet. Some investors swear by them, while others say they’re not worth the paper they’re printed on. So what’s the deal? What is a real estate investor credibility packet and are they really beneficial? That’s precisely what The Bird Dog Program Founder Kristine Zelazo will explore in today’s article.
What is a Real Estate Investor Credibility Packet?
Credibility packages are essentially a packet of information about you (and your company, if you have one), your experience and your successes as an investor. The package is designed to provide prospective lenders with confidence in you and your investing capabilities. This is necessary due to the higher risk involved with loaning money for a property that’s in need of major repairs and rehabbing.
The reality is that very few banks and mainstream lenders will work with fix-and-flippers and rehabbers due to the high risk. In fact, the only real mainstream loan available for this purpose is the Fannie Mae Homestyle loan program. But not every property or individual qualifies, which is why so many real estate investors turn to private hard money lenders. This is where a real estate investor credibility packet can be advantageous.
The typical credibility package should include:
- Personal information and an overview of your career, credentials, education and resume highlights.
- Information on your company (if you have one.)
- Success stories and case studies, showcasing your “wins” as a real estate investor.
- An overview of your general philosophy and strategy for real estate investing.
- Testimonials from clients, lenders, rehabbers and others whom you’ve worked with.
- And any other information that you feel is pertinent and instills confidence. Some will include a FAQ, for instance. Members of The Bird Dog Program can also indicate that they’re enrolled in our well-known program, which is operated under the direct oversight of a seasoned real estate professional with many years of experience.
In addition to the credibility packet that’s provided to potential lenders, some real estate investors will also make slightly different variants aimed at buyers and sellers. Again, the objective is more or less the same: the intention is to showcase your talents, your experience, your successes and your general approach to investing — all with an end goal of instilling confidence.
Do I Need a Credibility Package?
A well-crafted credibility package never hurts, but its actual usefulness and “need-to-have” factor varies depending upon the type of real estate investing in question.
Credibility packets are most important for investors who plan to hold the property for a period of time, such as in the case of a rehab or fix and flip. In these cases, you must find a hard money lender who can loan you the money you need to acquire and repair the property. This type of scenario involves lending a fairly large sum of money for a period of several months, and as such, a credibility package becomes far more important than it would be for some other investors.
For rehabbers and fix-and-flippers who are relatively new to the game and need to borrow money, a credibility package is quite useful. For a wholesaler, it may provide little benefit. Wholesalers often secure the contract on the property for a fairly small sum — if anything — and then serve as a conduit between the seller and the rehabber who’s actually acquiring the real estate. In this role, you may not need to tie up large sums of money for a period of several months. In fact, many wholesalers simply rollover the profit from their last deal and use the funds in the next venture.
Therefore, a wholesaler may not need to borrow any money. Or if funds are required, it’s a comparatively small sum, so most lenders are happy to let you borrow the funds without reviewing a detailed credibility package.
Learn More About Real Estate Investing With The Bird Dog Program
Getting started in real estate investing can be a challenge, but the right approach and the right guidance can make all the difference! An experienced guide can be a tremendous asset as you get started and this is precisely where you can gain a competitive advantage by working with a real estate investing mentor like The Short Sale Gal, Kristine Zelazo and The Bird Dog Program. You’ll have lots of advantages in this regard when you enter into a joint venture with a real estate investing, wholesaling and short sale expert like Kristine Zelazo.
Here are some answers to commonly asked questions in The Bird Dog Program FAQ.
Based in Florida, Kristine works with bird dogs, investigators, buyers and sellers. She is an experienced negotiator, investor and mentor who is available to start guiding you as a bird dog. Whether you’re ready to start buying short sales and need a great mentor or would like to pursue a short sale transaction for the sale of your property, turn to Kristine Zelazo, the Short Sale Gal!
Click here to learn more about The Bird Dog Program, or call Kristine at 800.664.0616, x802.