Appendix The appendix to your credibility kit is just what the name implies, a collection of added features. Technically, the appendix is optional and may frequently be absent in a very simple credibility kit, such as one you might distribute to investor colleagues or to a potential client. These types of recipients likely have no interest in your business plan or your financial projections for your business so it is best not to include this, as it will just be seen as fluff.

When it comes to more professional types of relationships, such as those with a banker or any number of private lending sources, these same kinds of appendix items all of a sudden become more useful. Why is this? It's pretty simple, really. The second group is in a position where you are seeking money from them and the stakes are a little higher. Sure, the same fundamental components of a credibility kit are still helpful, but they will likely want to see more. For example, if you are seeking private lenders to pursue REO properties (those taken back by the bank), some market statistics for the volume and pricing for these kinds of homes would be very useful in presenting your cases to a would be lender. Similarly, sales statistics for these kinds of homes in your area are also useful, as most lenders are rightfully curious about how long they will have their money floating around and tied up in your properties.

Business plans and financial projections are what I like to call the 3^rd level of what you might include in an appendix section of your credibility kit. Colleagues, clients, and even private lenders may not want or need to see this information but a banker sure would. Even if they don't specifically ask for this kind of information, it adds a solid professional touch to your presentation and, in today's day and age where money to lend seems pretty tight, every little boost you can give yourself will help. My suggestion here is to prepare the previously discussed components of your kit and have them ready to present to all clients. This would represent your so-called core part of your kit and will be the most widely used. Your appendix should be designated for specific types of recipients only and the fact that this extra information is included in an appendix section makes it easy to either add or leave off, depending upon who is getting your kit. The remainder of this section discusses one of the most common and most critical parts of an appendix that being the business plan.

For other parts of the appendix that I have discussed, I suggest working with a local realtor for much of the market research data, keeping real estate clippings from your local paper so they can be scanned into a digital form, and tabulating your short and long term growth projections into a spreadsheet. Sure, these things may take a little time and effort, but it is well worth it. I can teach you everything you need to know about starting in real estate investing. After you know the basics, I'll work with you to ensure your time and passion for making money in this business will be richly rewarded.