How to Prepare a Financial Package for a Commercial Construction Loan, Winston Rowe and Associates

PHOENIX - Sept. 2, 2020 - PRLog -- Keep in mind that each Lender that Winston Rowe and Associates works with has its 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)

Winston Rowe and Associates prepared this article, they are a nationwide consulting firm that specializes in due diligence for commercial construction project financing. You can contact them at 248-246-2243 or visit them online at https://www.winstonrowe.com