I have been thinking about this for a while now and since being more active on here, I have noticed that something that comes up a lot is that people aren't aware of the information that is needed in order to get a quote for financing.

On a day to day basis, even from people who have been in the industry for a while I get push back on when I ask for information. Often people say, but can you just give us terms? I can give you a rough (very rough) estimate based on what we have seen in other deals that we are working on BUT the truth is in order to produce a quote that is accurate and not a waste of your time (and mine) and a disservice to you, we really do need solid information.

When you work with us we will ask for the following -

- A purchase agreement for the acquisition OR if it's a refinance, the amount that is owed.

- Historical financial information on the property, a T12 (for multifamily), a YTD P&L and a rent-roll.

- Any additional information you may have such as an OM or an old appraisal etc.

- Leases (not necessarily needed at first, but we will need to review these).

On the sponsorship side, we need to know -

- Net worth and liquidity of each sponsor with a share of 20% or more.

- An REO schedule and information about experience in commercial/multifamily investing.

I have been told in the past from people that other brokers or lenders will provide terms without this information, indeed people out there that will say "we can get you a 4% rate on a 30 yr am and non-recourse!" and they blanket it and then, once you get a real quote, that is completely inaccurate! I see this a lot....

Once this information is received by us, our job is to thoroughly underwrite it to make sure that the deal makes sense for you and for your company, in addition, it helps us to determine which lender we would go to (agency, bank, hard money etc.). It is necessary and it saves everyone involved a lot of time.

I hope this clarifies things for both new and seasoned investors alike! At the end of the day, I want to assure people that when I ask for the above material, it is not because I am pestering them, but is, in fact, necessary in order to get any level of financing.

Thank you!

3 Votes