10 Steps Every Real Estate Investor Must Take Before Seeking Funding

If you're ready to dive into real estate investing but aren’t sure if lenders will take you seriously, you're not alone.

Here’s the hard truth:
Lenders don’t just fund deals—they fund prepared investors.

At Royal Vision Society, we help aspiring investors like you get ready to secure funding and build a lasting legacy. Before you seek financing, follow these 10 essential steps to make sure lenders see you as a credible, trustworthy, and fundable investor.

1. Register Your Business Entity (LLC or Corporation)

Lenders are looking for professionalism and structure. Creating an LLC or Corporation signals that you’re treating your real estate venture like a true business—not just a side hustle.

Why it matters:

• Separates personal and business liabilities

• Boosts credibility with lenders and partners

• Offers tax benefits and asset protection

Action Step:
Set up your LLC or Corporation in your state and get compliant.

2.Obtain an EIN (Employer Identification Number)

An EIN is your business’s identification number for tax purposes. It’s essential for opening bank accounts and filing taxes.

Action Step:
Request your EIN from the IRS (it’s free!).

3.Open a Business Bank Account

Keep your business finances separate from your personal accounts. Lenders will need to see organized financials, and a dedicated account makes that easy.

Bonus Tip:
Use this account for all property-related income and expenses.

4. Align Your Personal Credit (FICO Score 680+)

Even though you’ll be investing through your business, lenders often pull personal credit to assess risk. Aim for a FICO score of 680 or higher.

How to get there:

• Dispute inaccuracies

• Pay down revolving debt

• Avoid new inquiries before applying

Need help improving your credit? We can guide you!

5. Build Cash Reserves (10-20% of Purchase Price)

Lenders want to know you can weather any storm. Having 10-20% of the purchase price saved shows them you’re ready for repairs, vacancies, or market shifts.
Don’t forget reserves for closing costs, inspections, and repairs.

6.Document Your Income (2+ Years of Tax Returns)

Whether you’re a W-2 employee or a business owner, lenders want to see a history of

income stability.

Prepare these documents:

• W-2s, 1099s, or business tax returns (at least 2 years)

• Recent bank statements

• Organized profit and loss statements (if self-employed)

7. Choose Your Real Estate Strategy (Fix & Flip, Buy & Hold, BRRRR

Before lenders hand over the funds, they want to know how you’ll use the money.

Popular strategies:

• Fix & Flip – Renovate and sell for quick profits

• Buy & Hold – Rent out properties for long-term cash flow

• BRRRR – Buy, Rehab, Rent, Refinance, Repeat (build cash flow and equity)

Align your financials with your strategy for the best lender fit.

8.Get Pre-Approved & Secure Proof of Funds (POF)

A pre-approval letter from a lender and proof of funds (POF) show sellers and lenders that you’re serious and ready to act fast.
Keep these updated every 30-60 days to stay competitive.

9.Build Your Real Estate Team (Realtor, Lender, Contractor, CPA, Attorney)

Real estate is a team sport. Lenders trust investors who have professionals backing them up.

Key team members:

• Realtor or wholesaler

• Contractor or inspector

• Lender or private money partner

• CPA with real estate experience

• Real estate attorney

10. Educate Yourself on Market Trends & Exit Strategies

Know your numbers before you buy! Study:

• ROI (Return on Investment)

• ARV (After Repair Value)

• Cap Rate and Cash Flow

And always have a Plan B exit strategy. Lenders want to see that you’ve thought ahead.