1. Borrower Background Identification: borrower’s government-issued ID (drivers license, passport).

Credit Report: Reviewing your credit report won't affect your application, but it is required for evaluation.

References: Contact professional references (e.g., previous lenders, partners).

2. Financial Capacity Income Verification: Pay stubs, tax returns (past 2 years), or bank statements. Net Worth Statement: Details of assets (cash, real estate, stocks) and liabilities (debts, obligations).Debt-to-Income Ratio (DTI): Evaluate borrowing capacity.

Liquidity: Confirm availability of cash reserves for contingencies (typically 6 months).Creditworthiness: We are going to assess ability to repay loans based on history and current commitments.

3. Project Due Diligence Project Proposal: Detailed description of the real estate project (e.g., fix-and-flip, rental property). Scope of Work: Itemized list of repairs or improvements planned with cost estimates. Appraisal: Independent property appraisal to confirm market value. ARV (After Repair Value): Independent analysis of the post-repair market value. Comparable Sales (Comps): Analysis of similar properties sold in the area. Environmental Assessment: Confirm no environmental liabilities (e.g., asbestos, contamination). Exit Strategy: Borrower’s plan to repay the loan (e.g., selling, refinancing, rental income).

4. Legal Documentation Ownership Documents: Title deed, current property ownership verification. Insurance Coverage: Proof of homeowners insurance, title insurance, or builder

s risk insurance.

Permits: all required permits for the project are in place (construction, zoning, etc.). Legal Disclosures: Review any existing liens, pending lawsuits, or judgments against the borrower.
Business Entity Verification: If borrowing as a business, confirm LLC or corporation details, EIN, and good standing status.

5. Loan Details Loan Agreement: Clear terms (interest rate, repayment schedule, fees).

LTV (Loan-to-Value) Ratio: Compare requested loan amount to property value (typically < 70% for fix-and-flips).