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

Not all Lenders or loan programs are created equal and each program has it’s own specific guidelines. That being said, here is a general list of the items you should consider preparing in advance of contacting Lenders for a loan quote*:

General

Schedule of Sources & Uses
Name of current lender and payoff amount (including any prepayment penalty)
Property name/address
Date property was built/rehabbed
Requested loan terms (i.e. loan amount, interest rate, term, amortization, fixed/variable, etc.)

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 tax returns (needed for all recourse loans and some non-recourse loans)
Real estate resume for the managing member or general partner

Property-Related Documents

Past 3 years of annual operating statements, broken out by month
Trailing 12 month operating statement, broken out by month
Previous 3 years tax returns for the Borrower
Schedule of capital repairs completed in the last 3-5 years, including description and cost
CapEx budget (if capital improvements planned/needed in the next year)
Current rent roll (including and options, rent escalations, start dates and end dates); if single-tenant property, provide a copy of the lease and any amendments or options
Property management company information

*Please note that this list is for stabilized properties only. For a list of suggested items for a construction loan, click here.

About the Author

Leanne Eicoff
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.