Documents Needed for a Private Money Loan: A Practical Checklist

For most private money loans, you will need documents in six groups: the property, the borrower or entity, title, support for value, your exit plan, and insurance. Exact requests vary by deal, but a file that arrives with these items organized is the file that moves fastest.

Private lending is equity-led, so the paperwork is aimed at one question: is there enough value in this property, and a believable way to repay us? Below is what we typically ask for and why, so you can gather it before you apply.

The property

Start with what the lender is actually lending against. Helpful items include:

• The address, property type and a short description of the current use and condition.
• The purchase contract, if you are buying, including any addenda and the closing date.
• For a refinance, the most recent mortgage statement or payoff information for any existing loan.
• Photos of the property, interior and exterior, especially if it needs work.
• For income property, a rent roll and recent operating statements, plus leases where they matter.

For apartment and commercial deals, the multifamily program looks closely at in-place and projected income, occupancy and unit mix, so a clean rent roll is one of the most useful documents you can supply.

The borrower and the entity

We need to know who is borrowing and who stands behind the loan. For an individual that usually means identification and a short summary of your holdings. For a company, expect to provide formation documents, an operating agreement or equivalent, and a list of owners. We cover this in more depth in our guide to borrowing through an LLC.

You should also be ready to explain your experience with similar projects, in plain terms. A short paragraph is often enough.

Title and ownership

A preliminary title report is a core document in every private loan, because it shows who owns the property and what is recorded against it. If you are buying, the title company will usually open an order once the contract is signed. Read it early; our article on title reports explains what to look for.

Support for value

Because we lend against equity, value support matters. Useful items include:

• Recent comparable sales you have found, or an existing appraisal if you already have one.
• For a renovation, a scope of work and a budget showing what will be spent and by whom.
• For construction, plans, a budget and the contractor details; see our construction loan program for how that side works.

We form our own view of value, so your documents are support for the conversation, not a substitute for it. Our guide on how private lenders value a property goes through that process.

The exit plan

Every private loan is temporary, so we ask how it will be repaid. That might be a sale, a refinance into long-term financing, or completion of a project that converts to a permanent loan. Bring whatever supports your plan: a listing strategy, a prior refinance conversation, a business plan for a stabilization, or a timeline for completing the work. A written one-page summary is better than nothing, and much better than saying "we will figure it out."

Insurance and miscellaneous items

Expect to arrange hazard insurance on the property, with the lender named appropriately. Construction projects often need additional coverage, and your insurance agent can tell you what is available for the property type. We may also ask for a schedule of real estate owned, an explanation of any open liens or disputes, and bank statements showing that you can cover the costs of closing and the first payments.

What speeds things up

• Send everything in one organized package, labeled by category.
• Order title as soon as the contract is signed.
• Answer questions in writing the same day where you can.
• Disclose anything unusual upfront: a lien, a lawsuit, a code violation, a tenant dispute.
• Keep the contract timeline realistic. We can offer approval in as little as 24 hours and funding in as little as seven days, subject to a complete file, underwriting, title review and property valuation, but missing items are the most common reason a file slows down.

If you are unsure whether something is needed, ask before you spend time gathering it. You can also see our standard forms on the documents page.

Ready to start, or want a second opinion on what to bring? Call us at (800) 943-1314 or begin your application online. This article is general information only, not legal, tax or investment advice.