Taking the time to compile a sophisticated investor binder is the best use of your time – because when it comes to securing deals faster, presentation and high quality information really does matter. You want to make it easy for your mortgage company to say YES!

For maximum KAPOW! start by putting together the following:

1.  Firstly, buy yourself a one-inch binder, ideally one with a cover page so you can insert a title page.

2.  Create a cover letter, addressed to your lender outlining what is included in the binder (this in itself will make the lender sit up and take notice of your application!). Don’t forget to include a reasonable time frame for hearing back from them and easily accessible contact details in case the lender needs to clarify information with you.

3. Put a personal photo of you and/or your family on the first page. You may think this is a little bit “out there” but if you make the application more personal you will appeal to the underwriter. Imagine the underwriter sitting in amongst all those pieces of paper and then they pick up yours and the first thing they see is something they can connect with! That will go a long way in making them say YES to your deal.

4.  Include proof of income. If you are employed obtain a letter from your employer (on company letterhead) indicating how long you have worked for the company, your role, salary details, including bonus and a contact details for the employer providing the reference.  If you are self employed, you will need to include documentation from CRA in the form of Notice of Assessment. Include copies for the last two or three years if possible.

5.  Thoroughly complete a mortgage application form. Your goal is to provide information to the lender long before you are asked for it.

6.  Include a cash-flow summary to include all your sources of income.

7.  Obtain your own credit bureau report, check it for accuracy and include it in your file. If you are happy to share this in the binder before they pull the report they will know you are serious.

8.  Add a current Net Worth statement to include a list of all your assets (including RRSP’s) and liabilities (credit card balances, loans etc). Always sign and date this statement. Don’t forget to include the money you are using as a downpayment – and list it on the statement.

9.  Add a real estate asset statement. A sophisticated mortgage lender will love this. Include a statement showing all the details of the property/properties you own including outstanding mortgage, maturity date, equity in each property and cash flow generated.

10.  Make 3 copies – give one to your banker and keep the other two as backup – incase another deal comes along while the current one is being processed.  Always keep one as a master copy and keep it updated regularly.

If you want to stand out from the crowd, this will give you a distinct advantage.  Sure it takes some time to collate the information, but the results are *always* well worth it as it gets you the mortgage!

Give us a shout if you need any further information,

To YOUR Investing Success!

Richard & Jane

Invicta Property Investments