• I am considering buying a local 5 unit in my neighborhood. I found a local bank that is considering lending some of the money and they are asking for the following items:
• Pro Forma - Do I create this or do I request this from the owner?
• Market Information - Any recommendation for what I should send over? I was thinking to just give them a Zillow market analysis article of the area
• Sponsor Financials - If I am buying this myself can I also be my own Sponsor for the property?
• Any help that can be provided would be greatly appreciated. :-)
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As the operator of the deal, you will create the ProForma. This is your budget of income and expenses and how you will run the asset.

For Market information, what information are you using to prove out this deal is a good one? The more detailed information you can provide the lender the better. If the banker has to work hard on supporting your numbers, they will most likely work on an easier file.

Yes, you can be the Sponsor so you will need to provide a PFS (Personal Financial Statement) and REO (schedule of real estate owned).

Good luck with the transaction

@Brian Adams Thanks! That was helpful.

I would start talking to other lenders and brokers right now. You will need alternative sources. If you will be using a PM start looking for one now and make them part of the package. Don't say you will self manage unless you are fully capable. You will need considerable reserves-12 months. I would also 1 recruit an accountant well versed in REI and get his help with the financials. Get an attorney as well. Be prepared and in charge.

@Bjorn Ahlblad I'm thinking of asking about seller financing for now in my own name and then later transferring ownership to my LLC. Thoughts on this strategy? Commercial is a new animal for me.

Seller financing can be a great bonus and also a curse. Your lender will act as a second set of eyes and ensure your homework gets done. Will you still do that as thoroughly on your own?

You need someone other than seller telling you whether or not this is a good deal. Whatever you decide get a proper inspection and an appraisal done by a broker or appraiser.

If you go for seller financing have an attorney you pay, do or approve all the paperwork associated with the transaction. All the best!

where are you located? and where is the property?

Add up all the expenses (whatever expenses you would be paying as the landlord) - total for one year

Add up all the rents - total for one year

I don't mind working thru the numbers with you. let me know.