The Four Pillars of Financing

Profitability: do the numbers leave room?

Review the expected value alongside purchase, renovation, financing, holding and selling costs. Gross value spread is not profit. If costs are unknown, a complete profit or return estimate cannot yet be supported.

Credit and experience: what is the borrower’s background?

Credit is part of the borrower profile reviewed for financing. Experience means relevant projects completed and the work involved in them. Credit and relevant experience inform the discussion; neither a credit score nor a project count guarantees a financing structure.

Liquidity: can the project keep moving?

Liquidity is cash or assets that can readily become cash. Review money available for closing, work before reimbursement, reserves and unexpected costs. A project can show an attractive value spread while still requiring substantial cash along the way.

Your quick checklist

• Bring the project economics, including missing costs.
• Describe similar projects honestly, even if this is your first.
• Separate available cash from money already committed elsewhere.
• Discuss credit details privately with Ben through an appropriate secure process.