How to Prepare a Financial Package for a Commercial Construction Loan
Published 09-28-2018


Keep in mind that each Lender has it’s own specific guidelines and that commercial construction loans take quite a bit of diligence before they are approved. This is only meant to be a general list of the items you should consider preparing in advance of contacting Lenders for an investment construction loan*:

General Project Documents

  • Project Executive Summary, including schedule of Sources & Uses

  • Status of entitlements and permits (regulatory letters, if available)

  • Resumes for Architect, General Contractor

  • AIA bid submission, if available

  • Feasibility/market study

  • Marketing plan

Borrower/Sponsor-Related Documents

  • List of all Sponsors (including spouses) with at least 10% ownership in the property

  • Personal financial statement (PFS), including a schedule of real estate owned, prepared for each of the above Sponsors

  • 3 years personal and corporate tax returns on each sponsor

  • Real estate resume for each sponsor

Property-Related Documents

  • Any available third party reports (appraisal, environmental, engineering, zoning, survey, etc.)

  • Proforma (including construction, lease-up, and at least 3 years of stabilization)

  • Project budget (including hard and soft cost items); detailed list of any current debt/equity into project

  • Site/construction plans

  • Any executed pre-leases

  • Borrower organizational documents

  • Any JV or equity agreements

  • Franchise agreement (for flagged hotel)

*Please note that this list is for investment construction loans only. For a list of suggested items on stabilized properties, click here. Owner-occupied construction loans follow the substantially similar guidelines to an SBA loan.


Author: Leanne Eicoff

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