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Personal Financial Statement - March 2024


Last updated: March 1, 2024


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What is a Personal Financial Statement?


A Personal Financial Statement is a document that real estate investors applying for a loan provide to lenders in order to communicate their assets, liabilities, and income.


In many cases, the Personal Financial Statement is part of a loan application form that also includes legal questions.


What information is included in a Personal Financial Statement?


Assets Section of the Personal Financial Statement


The assets section of the personal financial statement is important because private lending to real estate investors is generally asset-backed. This is where the term hard money comes from, because the loan is backed in large part by real estate which is commonly referred to as a "hard asset".


The asset column will include:


  • Cash
  • Accounts Receivable
  • Retirement Account(s)
  • Brokerage Account(s)
  • Life Insurance Cash Value
  • Real Estate
  • Automobile(s)
  • Other Assets

Liabilities Section of the Personal Financial Statement


The liabilities section of the personal financial statement is important because the private lender needs to understand what you owe in order to determine the degree of risk that they will not be able to recover the value of the loan you are applying for.


The liability column will include:


  • Accounts Payable
  • Notes Payable
  • Credit Card Loans
  • Margin Loans
  • Student Loans
  • Real Estate Mortgages/Loans
  • Auto Loans
  • Other Liabilities

How to calculate Net Worth


Net Worth = Assets - Liabilities


Your net worth is simply your total assets minus your total liabilities.


For example, if your assets are $10,000,000 and your liabilities are $5,000,000, then your net worth is $5,000,000.


Income Section of the Personal Financial Statement


Real estate private lenders such as OfferMarket Capital do not require salaried employment. This is a stark contrast to conventional mortgage lenders who generally require a W-2 and proof of employment.


Still, the lender will want to understand your income profile.


The income section will include:


  • Salary
  • Real Estate Income
  • Investment Income
  • Other Income


Real estate private lenders will commonly ask the following questions to determine additional risk factors that can impact their ability to underwrite the loan.


  • Are you a U. S. Citizen?
  • Have you ever had a foreclosure, deed-in-lieu, or loan modification?
  • Are you defendant in any legal action or have unsatisfied judgments against you?
  • Are you under indictment, on probation or parole or ever been charged or convicted for a criminal offense?
  • Have you ever gone through a bankruptcy or made a general assignment?

Personal Financial Statement Template


Now it's time to see an example of a personal financial statement. For your reference, here is OfferMarket Capital's Personal Financial Statement template.


Personal Financial Statement Excel Template


To download the Personal Financial Statement Excel template:


  1. Go to our Personal Financial Statement Google Doc
  2. Click 'File' in the top left menu
  3. Click 'Download' in the dropdown menu
  4. Select 'Microsoft Excel (.xlsx)' from the list of options

Personal Financial Statement PDF Template


To download the Personal Financial Statement PDF template:


  1. Go to our Personal Financial Statement Google Doc
  2. Click 'File' in the top left menu
  3. Click 'Download' in the dropdown menu
  4. Select 'PDF (.pdf)' from the list of options

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