Steps to Working With Liquid Lending
You're ready to secure financing for a promising real estate investment, but how do you make a strong first impression? If it's your first time approaching a hard money lender like Liquid Lending, you might feel intimidated or nervous. We believe the best way to calm your nerves is to be prepared.
When you know what happens behind the scenes, you can present your project in a way that builds trust and speeds up approval. Lenders want to fund good projects run by knowledgeable investors, so demonstrating your competence from the start will improve your chances. Here's a step-by-step guide to bringing your first deal to Liquid Lending.
Create a Real Estate Bio
The fastest way to build trust with a new lender is to show them who you are. Instead of a long, informal introduction, present a clear summary of your background. As Owen Dashner, Co-Founder of Liquid Lending, explains: "The most helpful thing for us is shortcutting […] the introduction part—so if you can put together a real estate bio, [it’s] kind of like a resume."
Your real estate bio should include:
The number of properties you've successfully completed
The specific types of properties you focus on (single-family, multifamily, commercial)
How many rental properties you currently hold in your portfolio
A brief timeline of your investing career over the last several years
This gives the underwriting team a quick, accurate snapshot of your experience level.
Share Your Track Record Honestly
If you've completed deals in the past, provide a clear overview of your recent projects. This applies even if you used a different financing method or a different lender. Detail how much you paid for the property, your scope of work during the renovation, the final sale price, and your overall profit.
Don't hide your less successful projects. Transparency builds strong partnerships. "If you've done deals that haven't made money, that's okay, too," Dashner says. "I mean, we're not expecting every deal to be a home run. We're realistic about this."
Verify Geography and Project Type
A common mistake new investors make is assuming every lender operates everywhere. You might find a fantastic investment property, only to realize your chosen lender doesn't service that specific area.
Before you submit a formal application, ask a few clarifying questions. Find out if the lender likes funding the specific type of project you've selected. Ask if they operate in the city or neighborhood where the property is located.
"Be aware of who your lenders are. Reach out to them. Introduce yourself," Dashner advises. Confirming these details early prevents you from having to scramble for a new lender at the last minute.
Prepare Your Paperwork in Advance
Real estate transactions require a lot of documentation. The best way to impress a hard money lender is to have your entire file ready before they even ask for it. Ask the lender for their document checklist ahead of time. Typically, you'll need to provide:
Your LLC operating agreements and entity documents
The fully executed purchase agreement
Proof of property insurance
A detailed scope of work and contractor bids
Dashner points out: "The real pain is when you are dealing with a newer borrower, and you have to ask them repeatedly for documents. You have to remind them of things over and over again. That starts making it feel not as much of a safe bet on that particular loan."
Preparation Is Priceless to Liquid Lending
Getting a hard money loan approved quickly comes down to preparation and clear communication. If you treat the process seriously, you'll be ready.
As Dashner summarizes: "Go in prepared and make it as easy as you can for the lender to make a decision in your favor." Follow these steps, and you'll be well on your way to funding your next big investment.
