When it comes to structuring a deal, most developers focus on the capital gap — but lenders focus on readiness.
Over the last few years, I’ve noticed that deals move faster (and get better terms) when the borrower has a clean due diligence stack ready before approaching mezzanine or bridge lenders.
Here’s a quick checklist we use internally before structuring mezzanine capital between $1M–$100M+ :
✅ Updated project financials
✅ Detailed pro forma with realistic DSCR assumptions
✅ Rent roll or trailing 12-month P&L
✅ Capital stack breakdown showing senior + subordinate layers
✅ Clear exit or refinance plan
Having these ready builds lender confidence and speeds up funding timelines.
💡 Curious — for those of you who’ve raised mezzanine or bridge capital recently:
What’s one document or metric lenders focused on the most during your due diligence?
📎 If anyone wants the full PDF checklist we use, I’m happy to share — just drop a quick comment or DM.
Rental Property Investor · CO NC SC TX AL, GA · Member since 2020 · 31 posts · 26 votes
10mo
@Paul G. Ward III Really great checklist, completely agree that readiness drives confidence with lenders.
A few elements we’ve found helpful to include as well:
▪ Sensitivity analysis on DSCR
Just a quick look at how the deal holds up under different rate or OpEx scenarios.
Shows we’re realistic about what’s changing in the market.
▪ Institutional OpEx benchmarks
A one-liner that ties expenses to actual operator averages helps align expectations early.
▪ Brief risk/mitigation bullets
Doesn’t need to be heavy, just shows we’ve already thought through the downside.
Those couple of additions have made conversations with lenders much more efficient on our end, especially when moving from preliminary interest to real underwriting.
Appreciate you sharing this, would definitely like to take a look at your full checklist PDF as well. Always helpful to see how others are organizing DD to keep capital moving.
Rental Property Investor · CO NC SC TX AL, GA · Member since 2020 · 31 posts · 26 votes
10mo
@Paul G. Ward III Really great checklist, completely agree that readiness drives confidence with lenders.
A few elements we’ve found helpful to include as well:
▪ Sensitivity analysis on DSCR
Just a quick look at how the deal holds up under different rate or OpEx scenarios.
Shows we’re realistic about what’s changing in the market.
▪ Institutional OpEx benchmarks
A one-liner that ties expenses to actual operator averages helps align expectations early.
▪ Brief risk/mitigation bullets
Doesn’t need to be heavy, just shows we’ve already thought through the downside.
Those couple of additions have made conversations with lenders much more efficient on our end, especially when moving from preliminary interest to real underwriting.
Appreciate you sharing this, would definitely like to take a look at your full checklist PDF as well. Always helpful to see how others are organizing DD to keep capital moving.
@Paul G. Ward III Really great checklist, completely agree that readiness drives confidence with lenders.
A few elements we’ve found helpful to include as well:
▪ Sensitivity analysis on DSCR
Just a quick look at how the deal holds up under different rate or OpEx scenarios.
Shows we’re realistic about what’s changing in the market.
▪ Institutional OpEx benchmarks
A one-liner that ties expenses to actual operator averages helps align expectations early.
▪ Brief risk/mitigation bullets
Doesn’t need to be heavy, just shows we’ve already thought through the downside.
Those couple of additions have made conversations with lenders much more efficient on our end, especially when moving from preliminary interest to real underwriting.
Appreciate you sharing this, would definitely like to take a look at your full checklist PDF as well. Always helpful to see how others are organizing DD to keep capital moving.
Thanks again!
—Dan Sehy - Gold Crest Holding
Thanks, Dan — excellent adds.
Sensitivity analysis and institutional OpEx benchmarks are exactly the kind of details that separate surface-level prep from true lender readiness. I like your framing on risk/mitigation bullets too — concise but proactive.
I’ll DM you the full checklist PDF — would be great to hear what else your team includes when packaging deals for underwriting review.
@Paul G. Ward III Really great checklist, completely agree that readiness drives confidence with lenders.
A few elements we’ve found helpful to include as well:
▪ Sensitivity analysis on DSCR
Just a quick look at how the deal holds up under different rate or OpEx scenarios.
Shows we’re realistic about what’s changing in the market.
▪ Institutional OpEx benchmarks
A one-liner that ties expenses to actual operator averages helps align expectations early.
▪ Brief risk/mitigation bullets
Doesn’t need to be heavy, just shows we’ve already thought through the downside.
Those couple of additions have made conversations with lenders much more efficient on our end, especially when moving from preliminary interest to real underwriting.
Appreciate you sharing this, would definitely like to take a look at your full checklist PDF as well. Always helpful to see how others are organizing DD to keep capital moving.
Thanks again!
—Dan Sehy - Gold Crest Holding
Thanks, Dan — excellent adds.
Sensitivity analysis and institutional OpEx benchmarks are exactly the kind of details that separate surface-level prep from true lender readiness. I like your framing on risk/mitigation bullets too — concise but proactive.
I’ll DM you the full checklist PDF — would be great to hear what else your team includes when packaging deals for underwriting review.
Appreciate you jumping in and adding value here.
@Paul G. Ward III. Great post. I'd like the full PDF checklist please.
@Daniel Sehy thank you for the additional color. Completely agree!