Preparing a loan doc package for potential lenders

7 Replies

Wondering if anyone has a sample or template they could share for preparing a "package" for a potential lender (for commercial apt bldg)? I'm looking for a professional looking way to present the usual docs, like Exec summary, financials, mkt analysis, rent roll, etc. I've been told that presentation can really affect perceived value (and may even influence a mediocre appraisal). Esp. interested in a compelling exec summary narrative.


@Tim Daunch ...where did you get that information?  And what type of lender are you preparing for?  

Presentation might make you look good, but I've never seen it influence a mediocre appraisal.  If you have everything nicely sorted, labelled, and in one small PDF file, that's probably the best way to present.  

@Tim Daunch A better package might not be able to help a mediocre appraisal but it will definitely not hurt it. It will also help you in marketing yourself as a professional (as long as you do it professionally). 

You need to start with the overall business plan, move into existing numbers, what you plan on doing, how it will affect future #s (i.e. how did you add value and how did the price of the property go up) and ideally, what your exit strategy(ies) are. In summary a business plan from start to finish. 

A good presentation can help influence an appraisal to a great degree if you are completing a value add. If you can have a presentation that will show the area comparable's and a detailed business plan on what you are doing with the property, timelines, etc, that will show the appraiser you are prepared. Pictures also will help. 

The main elements you need to include in your loan package to be really successful:

1. Project Summary - what, where, highlights.

2. Financing Request - amount, LTV/LTC, Term, capital structure, requirements

3. Sponsor Profile - names, track record, assets under ownership, location, SREO

4. Asset info - address, asset type, sqft, units, year constructed, etc.

5. Financials - rent roll, cash flow, pro forma

The industry standard is to package it up as an attractive PDF, but we make it a step more interactive for the lender for quickest turnaround and max transparency. Here's an example: StackSource loan package example

Thanks all. In order to be brief, I left out a key component of the story, i.e. we've controlled the property for a year now (2-yr lease option), added a fair amount of value (from 25% occupied to 11/12 occ in 3 months!), substantial reno investment, etc., so I esp. appreciate Todd's comments re: value add. @Tim Milazzo - great stuff! - it hadn't occurred to me to use a web page format in addition to a more traditional PDF.

@Tim Daunch , if you have access to it, I would take a look at the package that RealtyShares puts together for their sponsors to raise money. I actually copied their format and presentation. 

@Tim Milazzo , I can't believe I haven't heard of Stacksource, yet. You've been around for 2 years? I'm definitely going to give it a try on my next deal. 

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