OfflineI am in the process of trying to get a hard money loan to purchase a unit apartment building. My broker asked for a Exit Strategy Summary.Does anyone have a sample of this summary so I have something to build mine from? I have looked online and can only find templates for Executive Summary. My exit strategy is to Refinance
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Set a goal to achieve something that is so big, so exhilarating that it excites you and scares you at the same time. It must be a goal that is so appealing, so much in line with your spiritual core that you can't get it out of your mind. If you do not get chills when you set a goal, you're not setting big enough goals." (BO Sundberg)
Vicky Diaz
Typically, lenders look for refi or sale as the exit strategy. However, this does bring up potential issues for lenders.
If a sale: Lenders want to see you have some experience in how to price, market, etc. What will conditions be like then? Do you have a buyer already in mind or even in contract? Does the sale require a rehab..if so what are you doing? If a rehab do you have the funds to finish the job..and do you have competent people to do the work and assure the finish of the job, etc. What is the timing of such a sale..is this a 3 month typical window or a 18 month sale window.
If a refi: do you the credit, net worth, experience, etc to get a take out loan? What is the market like for the loan you want? If you are expecting to get a convention, long term loan, then the HMLender will be looking hard at your credit etc to see that you would qualify.
Finally, do you have a backup plan? if you cant refi will you sell, and vice versa. do you have a private solution..ie a family member/partner who does have the credit, experience, finances to help get it either sold or refinanced.
Hope this helps