In a previous blog (Get Organized Before Buying Investment Real Estate), I outlined a list of documents that anyone should have prepared before they seek financing for their real estate investment acquisitions.
One of the most important documents is your “Net Worth Statement”. In the last year I’ve had the pleasure of reviewing dozens of these and, as a result, it’s clear to me that many newbie investors have a challenging time filling it out properly. As a result they have reported having a challenging time obtaining financing approval within the time constraints of their deadlines.
Because of this I’ve decided to take the time to prepare a mock net worth statement for your review. Take the time to review it in detail and compare it to your own. All of this information is vital when financial institutions are performing their due diligence.
Is your net worth statement is missing anything? If so, it’s time to adjust it. This can be the difference between refusal or acceptance. One last reminder, don’t falsify numbers, even if the banker tells you it’s okay to “estimate”, it is a criminal offense to receive financing approval based upon false information. If you haven’t previously read my blog that discusses the other requirements to receive financing approval, you should take the time now to read it now (Get Organized Before Buying Investment Real Estate).
Where you will be in a decade depends on the actions you perform today. Go get ’em tiger!