Loan Submission Checklists

For all properties (excluding hotels and construction) please provide a brief summary which includes the following initial information to ensure quick consideration: 

This is what we need, digitally:

  1. Brief executive summary briefly describing

(a) The transaction – purpose, loan amount, term, LTV, DSC, preferred closing date, drop-dead dates, etc.

(b) The property – location, type, size in sf, units, % occupancy, year built, land size in acres, quality/condition, significant issues, if any

(c) The borrowers – bio, background, experience, BK or other significant issues.

  1. Current rent roll, including all vacant sf/units so it adds to 100% of sf/units;(even if  100% owner occupied or single tenant).
  1. 2012 and 2013, 2014 property P&L
  1. Y-t-d property P&L (for hotel, trailing 12 too)
  1. Personal financial statement of each principal – detailed
  1. Credit info on each principal; i.e. report “low 700’s” or “high 500”s, etc. or complete credit report showing all 3 credit scores- if below 680, provide written explanation.

 

  1. If purchase, purchase and sale agreement
  1. Detailed sources & uses of funds schedule
  1. 6 color photos showing exterior and interior
  1. If completed, any  3rd party reports; appraisal, environmental, property condition, feasibility, seismic, etc. If not completed, do not order now!

Preferably, use www.dropbox.com, a free web-based file storage site, and upload all documents there, in place of emailing a dozen large files. Be sure the files are properly organized and labeled (see below). Once the files are uploaded, everyone who is invited can use the files with no need to email/fax project documents.

AT THIS TIME, WE DO NOT NEED TAX RETURNS, BROKER AGREEMENT.

BE SURE EACH FILE/ATTACHMENT HAS A LABEL THAT PROPERLY ID’S THE FILE. i.e. “2010P&L.pdf” and NOT “23456345.pdf”

For hotels:

  1. Brief executive summary describing

(a) The transaction – purpose (acqusition or refi, etc.), loan amount, term, LTV, DSC, preferred closing date, recourse/non-recourse, cash-out, etc.

(b) The property – location, type, size in sf, flag affiliation (start date and remaining term) number of rooms, conference/meeting space (sf), restaurants, etc., year built/renovated, land size in acres, condition, significant issues,

(c) The borrowers – bio, background, experience, any BK or other issues.

  1. Trailing 12 months with % occupancy, ADR, RevPar
  2. 2014, 2013 and 2012 property P&L
  3. Year to date property P&L
  4. Personal financial statement of each principal
  5. Credit info on each principal; i.e. “low 700’s” or “high 500”s, etc. or complete credit report showing all 3 credit scores
  6. If purchase, purchase and sale agreement
  7. Detailed sources & uses of funds schedule
  8. 6 color photos showing exterior and interior
  9. STAR report
  10. Most recent franchise inspection report
  11. If completed all 3rd party reports; appraisal, environmental, property condition

AT THIS TIME, WE DO NOT WANT TAX RETURNS, BROKER AGREEMENT. BE SURE EACH ATTACHMENT HAS A LABEL THAT ID’S THE FILE. i.e. 2014P&L.pdf and NOT 23456345.pdf

Ground Up Construction and Major Rehab Financing

Please organize as if this page is the Table of Contents!

 

General Property Information:

 

 Project name

 Project location (legal address)

 Description of project (type of construction, number of buildings, elevators, etc.)

 Amenities/Common areas

 Details on commercial space, if any

 Details on other sources of funding (tax credits, grants, etc.)

 Any third party reports that have been completed (market study, appraisal, phase I, etc.)

 Six color photos of the site and surrounds

 Any renderings that are available

 

Site: Evidence of site control (i.e. option agreement, purchase contract)

 Best estimate of “as-is” land value

 If the land/structure is already owned, balance of existing debt

 If the land/structure is to be acquired, balance of the acquisition price

 

Operating Proforma: Unit mix including unit types with number of bedrooms/bathrooms, unit square footages, and income at current market rental rates

 Breakout of ancillary income, if any

 Breakout of commercial income, if any

 Projected stabilized occupancy date and lease-up schedule by month

 Detailed stabilized operating proforma income/expenses at current market levels (stabilized)

 Projected unit absorption rate and estimate of operating deficit

 

Construction: Detailed hard cost budget, inclusive of costs related to site improvements, structures, contractor general conditions, contractor overhead, contractor fee, etc.

 Detailed soft cost budget, reflecting all soft costs required to build the project, including architect fees, tap/impact fees, permit costs, taxes during construction, etc.

 Anticipated construction period

 

Development Team: Name of Borrower

 Name and experience of Sponsor

 Name and experience of the General Contractor, if available

 Name and experience of the Architect, if available

 Name and experience of the Management Agent, if available

 Details regarding any identities of interest (common ownerships) that exist between the sponsor and other entities involved in the transaction (General Contractor, Management Agent, Commercial tenant, etc.)

 PFS of key principals

  Personal credit of key principals (actual scores or estimated)

© Sterling Commercial Capital. LLC – May 2015