If you are a real estate investor in the post-credit bubble market, you are well aware that traditional sources of loans and money are no longer available. The only option for earning money to buy real estate investments is to start and develop your own personal loan program.
One of the key elements to getting a private lender to invest in your real estate investment business is to develop and build a strong reputation as someone who is trustworthy and experienced as a real estate investor. One way you can achieve this is through a credibility kit.
A credibility tool is usually a written document that tells a story about who you are, your real estate investing or business experience and why you have specific knowledge and skills in the real estate investing area.
Everyone’s credibility set will be different, but I’ve listed a number of items you might want to consider including in your credibility kit.
- cover letter: A personal cover letter that briefly describes who you are including your name, address, telephone, fax number and email address or other contact information. If you have a company or legal entity that is a borrower, you need to list the company and principal
- Bio or Continue: A biography about you with achievements even if they are not related to real estate investing. This may include your background, years in business, years in the community, educational background, hobbies and your organization will add credibility to your background.
- Your team: Write down information about other people and staff in your company including outside vendors that you use regularly.
- Mission Statement: Describe your mission statement and what motivates and energizes you about real estate investing.
- Certificate and Training Camp: Membership, association, recognition, award, license and real estate investment training camp, seminar, etc. which you have attended.
- Testimonials: From buyers, sellers, investors, CPAs, lawyers, bankers, insurance agents, title companies, or other private lenders. Images with celebrities also add real credibility.
- Letter of recommendation: Your company, real estate attorney, banker, insurance agent, CPA, or other professional. The banker’s letter doesn’t have to go into your credit or finances. A simple letter saying that you have been a customer of the bank since XXXX and are a customer in good standing will do.
- Professional Real Estate License: Do you have a business license? Mortgage broker license? Real estate broker or agent license?
- Better Business Bureau: Are you a member of the Better Business Bureau, Real Estate Investor Association, Chamber of Commerce and Rotary? Include them all in your credibility kit.
- Press Writing: Stories about you, your company, your community services, etc. and articles you have published in print or online.
- Real Offer: Indicate the number of possible buy/sell transactions with how many your personal lender made or could have made on the deal. Photos are an added touch.
- Marketing Example: Do you have a website – if so – include some of the pages what they look like and what kind of information you have on the site. If the site has a Page Rank or Aleza rating, this should also be included. Include copies of all your marketing pieces including flyers, postcards, yellow pages, sticky notes, etc.
Your credibility set doesn’t have to be something you paid a fortune to build. No need to print professionally on glossy paper. It just has to show people your experience and knowledge, and to help them decide to invest with you.
A credibility tool is usually a written document that tells a story about who you are, your real estate investing or business experience and why you have specific knowledge and skills in the real estate investing area.
Everyone’s credibility set will be different, but I’ve listed a number of items you might want to consider including in your credibility kit.
