How to Prepare a Financial Package for a Commercial Construction Loan

TAMPA, Fla. - April 4, 2022 - PRLog -- 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.

They can be contacted at 248-246-2243 or visit them online at https://www.winstonrowe.com