If you’re a real estate investor in the post-credit bubble market, you’re well aware that traditional sources of loans and money are no longer available. The only option to get money to buy real estate investments is to start and develop your own private loan program.
One of the key elements in getting private lenders to invest in your real estate investing business is developing and building a strong reputation as a trusted and experienced real estate investor. One of the ways you can achieve this is through a credibility kit.
A credibility kit is typically a written document that tells a story about who you are, your real estate investing or business experience, and why you have special knowledge and skills in the area of real estate investing.
Everyone’s credibility kit will be different, but I’ve listed a number of items you might want to consider including in your credibility kit.
- presentation letter: A personalized cover letter that briefly explains who you are, including your name, address, phone, fax numbers, and email address or other contact information. If you have a company or legal entity that is the borrower, you must list the company and directors
- Biography or Summary: A biography about you with accomplishments, even if they are not related to real estate investing. This can include your background, years in business, years in the community, educational background, hobbies, and organizations you belong to, which would add credibility to your background.
- Your team: Enter information about other people and staff at your company, including third-party vendors you use regularly.
- mission status: Design your mission statement and what motivates and energizes you about real estate investing.
- Certificates and Boot Camps: Memberships, associations, recognitions, awards, licenses and any bootcamp, seminar, etc. investment in real estate. that you have attended
- Testimonials: From buyers, sellers, investors, CPAs, attorneys, bankers, insurance agents, title companies or other private lenders. Photos with celebrities also add some real credibility.
- Recommendation letters: Your title company, real estate attorney, banker, insurance agent, CPA or other professionals. The banker’s letter does not have to be included in your credit or finances. A simple letter stating that you have been a customer of the bank since XXXX and that you are a customer in good standing will suffice.
- Professional Real Estate Licenses: Do you have a business license? Mortgage Broker License? Real estate agent or broker license?
- Better Business Office: Are you a member of the Better Business Bureau, Real Estate Investor Association, Chamber of Commerce and Rotary? Include all of them in your credibility kit.
- press reviews: Stories about you, your company, your community service, etc. and articles you have published in print or online.
- real offers: Show a number of buy/sell transactions with perhaps how much your private lender did or could have done on the deal. Photos are an added touch.
- marketing examples: Do you have a website? If so, it includes some pages so you know what it looks like and what kind of information you have on the site. If the site has Page Rank or Aleza rating, these should also be included. Include copies of all your marketing pieces, including flyers, postcards, yellow pages, sticky notes, etc.
Your credibility kit doesn’t have to be something you pay a fortune to create. It does not need to be professionally printed on glossy paper. You simply have to show people your experience and knowledge and help them decide to invest with you.
A credibility kit is typically a written document that tells a story about who you are, your real estate investing or business experience, and why you have special knowledge and skills in the area of real estate investing.
Everyone’s credibility kit will be different, but I’ve listed a number of items you might want to consider including in your credibility kit.
