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.

About the Author

Leanne is a JD/MBA and works as a Managing Director for Commercial Loan Direct, specializing in large balance transactions, portfolio loans, and complex financing structures. When not negotiating the best deals for her clients, you can find Leanne in the yoga studio or snowboarding up in the Rockies.