Getting Ready

Once a decision to move forward has been reached it’s time to get ready for the first stage in securing financing. To start with please have the answers on yourself and subject property ready.  The financing process is thorough so please note that the more detailed they are the more efficient the process will be.

About the borrower.

1. Please describe your experience with CRE (commercial real estate).
2. What is your net worth?
3. How much of your net worth is liquid. (Bank accounts, securities, commodities, retirement). Please break down the liquid funds without any need to specify bank or account numbers at this time.
4. Your current profession and your annual income.
5. How is your credit history?
6. Do you have a Bio?
7. Are you looking to buy on your own or with a group of other investors?
8. Do you currently hold a U.S. entity (LLC, LLP, corporation, etc.)?
9. How familiar are you with the local market and why have you chosen this sub-market?
10. Anything else that you wish to share with us which you believe may be a strong factor in determining your credit/financial worthiness.

About the property.

1. Full address of the property.
2. What class property is it (A,B,C, or D)?
3. Number of units, year built, last renovation done, and what amenities it has.
4. Does the property need stabilization?
5. What is the price?
6. Is the property under professional management?
7. If it’s under current owner’s management do you have a strong relationship with a local management company that would be ready to be placed on the property?
8. Is the property under contract?
9. Anything else that you believe we need to know about the property and its location (the type of neighborhood, demographics, occupancy level, economic statistics, etc.)

If after the initial interview we believe you and your project could be approved for financing the following list of documents will generally be required in order to proceed:

Complete a Loan Application (will be provided)
Purchase Contract, if property is under contract
Detailed property description*
Brief history of the property and surrounding market*
Color photos of the property*
YTD P&L
YTD Rent Roll
YTD Balance sheet for property
2012 tax returns for the property
Bio on all borrowers (or Managing Partners, if a syndicate)
PFS for all borrowers (or Managing Partners, is a syndicate)
Bio or Website of the Property Management Company
Sample Lease
Certificate of Organization and the Operating Agreement for the buying entity

* A Marketing Package includes these items

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