To quickly and efficiently determine the level of interest the investment officer has in your loan request, prepare a concise loan request summary that provides enough detail to create a ÒsnapshotÓ of the transaction.
Loan Request
Loan amount, proposed collateral, repayment strategy, why the deal makes sense. Use of funds, purchase, refinance, rehabilitation, development, construction. Include budgets and pro-forma.
Borrowers-Guarantors
Background and experience, financial information, past and present projects, credit history.
Equity
Out of pocket cash in the deal, sweat equity, borrowed equity, market equity, value added equity.
Physical Aspects of the Property
Type, location, size, improvements, square footage, acreage etc.
Entitlement
Status of: zoning approval, development agreement approval, site plan approval, plat map, utilities availability and adequacy. If unentitled, provide critical path timeline and budget associated with procuring entitlements.
Performance Data
Provide net operating income, gross rents, income and expenses, DSC ratio, etc.
Market Information
Appraisal, comparable sales data, location maps, absorption, competitive projects.
Repayment Strategy
Define for the lender the primary and secondary methods of repayment of principal. Refinance, construction loan, sale of property, other.
Photographs
Through photoÕs the lender can visually get a feel for the property. If no appraisal exists and you are providing comparable sales as a method of establishing value, provide the photos of the comparable properties.
Remember
Always bear in mind that you and your deal are competing with many others for the attention of the investment officer. Whether or not your deal makes it to the top of the stack will depend on the quality of your executive summary. Know the property, know the market, know the borrower - and you will greatly increase your odds of procuring the financing necessary to close your deal.
