Bank loan package template

2 Replies

Hello BP community,

I am venturing out right now on my first commercial real estate deal and need to get my bank loan package together. I own a handful of residential properties already but never done anything in the commercial world but learning real quick all of the moving parts. I have talked to a few banks already to get high level terms. Wondering if anybody can provide a template loan package that encompasses all of the pieces I should be presenting to a bank when I do apply for the loan.

I didn't see anything on the BP blogs for this. Can anybody share some online resources? Links to articles or templates? Or even an outline from your own template?

As a starting point I have an outline put together based on some brainstorming and what I have come across from searching online.

Thanks, Gregg

I would take a banker to lunch or coffee (they love getting out of the bank) and just be up front. You have rentals, you are no dummy, this is your first time in this arena and don't want to waste anyone's time, pick their brain on what they like to see on a deal and build the package accordingly.

You will find that bankers are willing to spend some time up front to save a lot of time down the road.

@Gregg C.

It really depends on the deal and who is financing it. Can you give us some background on the deal? Depending on the deal a lot of local banks might not require an in-depth package however that doesn't mean you shouldn't properly put together a solid business plan, executive summary, and financials. When dealing with CMBS lenders they are going to want to see specific things. In a recourse scenario always clearly have an updated PFS (with certified POF) and 3 years personal tax returns. Along with that have 3 years business tax returns, business balance sheets, property snapshot, and a basic business resume giving your background and experience. In the business plan and executive summary you are going to want to outline the property/project, basic scope of work, improvement plan, pro-forma, project financials/loan request, demographics, history, and business structure. They are also going to want to see all of the property financials (3 years), leases, rent roll, etc etc.

As @Travis Sperr mentioned talk with your banker about what they are specially looking for with the loan submittal. The more organized you are the better you look from an underwriting perspective. Congrats on jumping into the commercial side of the business!

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