How to Create a Winning Real Estate Investment Proposal for Private Lenders

Securing funding for your real estate projects can be the make-or-break factor in your success. Private lenders, unlike traditional banks, prioritize speed, flexibility, and relationships—but they still require confidence in your deal before funding it.

A well-prepared real estate investment proposal isn’t just paperwork; it’s your pitch to prove why your deal is worth the investment. In this guide, we’ll break down the exact steps to create a winning proposal that gets private lenders on board.

Why Your Investment Proposal Matters

Private lenders aren’t looking for risky gambles; they’re looking for solid, profitable opportunities with capable investors. Your proposal:

1. Proves Credibility – A polished proposal shows you’ve done your homework and take the deal seriously.

2. Reduces Risk – By clearly outlining numbers, plans, and contingencies, you help lenders trust the project.

3. Saves Time – A streamlined proposal helps lenders make faster decisions—getting you the funds you need quickly.

Step 1: Start With a Clear Executive Summary

The executive summary is your first impression—it must be concise and compelling. In 2-3 paragraphs, outline:

• Who You Are: Briefly introduce yourself, your experience in real estate investing, and any key successes.

• The Deal Overview: Summarize the opportunity—location, type of project (fix-and-flip, rental, new construction), and key financial details.

• What You’re Asking For: State the loan amount, proposed terms, and expected use of funds.

Example:
"Hi, I’m John Doe, a real estate investor with 5 successful fix-and-flip projects in the Dallas market. I’ve identified a single-family property at 123 Main Street with a purchase price of $250,000 and a projected ARV of $400,000. I’m seeking $200,000 in financing to cover the purchase and renovation costs. The property will be listed for sale within 4 months, delivering a strong ROI."

Keep it sharp and focused. Lenders are busy, so grab their attention quickly.

Step 2: Detail the Property and the Opportunity

Now that you’ve hooked them, dive deeper into the property and why it’s a strong investment:

1. Property Description

• Address and location.

• Type of property: single-family home, multi-family, commercial, etc.

• Square footage, lot size, number of units or rooms, year built.

2. The Opportunity

Explain what makes this deal appealing:

• Is it an underpriced property in a hot market?

• Are there value-add opportunities through renovations?

• Does it fill a local housing need?

3. Supporting Data

Include market research and comparable properties (“comps”) to justify the property’s value and ARV. Tools like Zillow, Realtor.com, or MLS data can help.

Example:
"The property at 123 Main Street is located in a high-demand neighborhood where similar renovated homes are selling for $390,000–$420,000. Recent sales include:

• 125 Main Street: $405,000 (3 months ago)

• 130 Main Street: $395,000 (2 months ago)

• 128 Main Street: $410,000 (1 month ago)"

Backing up your claims with data shows you’re making an informed decision.

Step 3: Present the Financial Breakdown

Private lenders want to see the numbers—the clearer, the better. Include:

1. Loan Request

• Total loan amount needed.

• How you’ll use the funds (purchase, renovations, holding costs).

Example:

Category

Cost

Purchase Price

$250,000

Renovation Budget

$50,000

Holding Costs

$15,000

Total Loan Request

$200,000

2. After-Repair Value (ARV)

Clearly state your ARV and show how you calculated it using comparable sales.

3. Projected Return on Investment (ROI)

Show the lender how profitable the deal will be:

ROI Formula:
ROI = (Projected Net Profit / Total Investment) x 100

Example:

• ARV: $400,000

• Total Costs: $315,000 ($250k + $50k renovations + $15k holding costs)

• Projected Profit: $85,000

• ROI = ($85,000 / $315,000) x 100 = 27%

Step 4: Include a Realistic Timeline

Lenders want to know how long their funds will be tied up. Provide a detailed timeline:

Milestone

Timeframe

Close on Property

2 Weeks

Renovation Start

Week 3

Renovation Completion

Week 12

Property Listed for Sale

Week 14

Timelines show you’ve thought through every step and help build confidence in your execution.

Step 5: Highlight Your Experience and Team

Even the best deal requires the right people to execute it. Lenders need to trust you as much as the numbers.

1. Your Experience:

• Share a brief portfolio of past successful projects.

• Include metrics like ARV, ROI, or photos to demonstrate results.

2. Your Team:

List any professionals you’re working with:

• General contractor and their experience.

• Real estate agent for selling the property.

• Property manager (if rental).

If you’re a newer investor, emphasize partnerships, relevant skills, or mentorship that strengthen your credibility.

Step 6: Outline Your Exit Strategy

Lenders care about one thing: getting their money back with interest. A clear exit strategy reassures them that you have a plan to repay.

Common Exit Strategies:

1. Sell the Property: For fix-and-flip projects, show how the ARV ensures enough profit to cover loan repayment.

2. Refinance: For rental properties, explain your plan to refinance into a long-term loan.

3. Cash Flow: For rental income deals, show how rent covers debt service and creates positive cash flow.

Example:
"Upon completing renovations in 12 weeks, I will list the property for $400,000. Comparable properties have sold within 30 days, ensuring a timely sale to repay the loan."

Step 7: Keep It Professional and Polished

Presentation matters. Ensure your proposal is:

• Well-organized with clear headings and visuals (tables, charts, and photos).

• Concise and free of jargon.

• Backed with data and realistic projections.

Tools like Google Docs, Notion, Canva, or PDF templates can help you create a professional document that impresses lenders.

Conclusion

Creating a winning real estate investment proposal is about clarity, confidence, and preparation. By clearly presenting the opportunity, financials, and your plan for success, you give private lenders every reason to say yes.

At My Verified Investor, we connect prepared investors like you with verified private lenders ready to fund great deals. If you’re serious about taking your real estate investments to the next level, sign up today and start building the partnerships that will fuel your success.