How to Prepare a Financial Package for a Commercial Construction Loan
By: Winston Rowe and Associates
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.
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.
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.
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
Winston Rowe and Associates