Essential Documents For Facilitating A Commercial Loan
Most commercial loans never receive any consideration because they are incomplete or they aren’t packages according to the current CMSA Underwriting Guidelines. Though many of these submissions are great projects, they are never seen because because they aren’t properly formatted.
1. COVER LETTER: A project cover letter directed to the commercial loan officer you discussed your proposal with.
2. EXECUTIVE SUMMARY: Please Provide and executive summary with a detail financial and business plan.
This document must contain all the Borrowers background, education, previous experience and a detailed of previous projects in addition to the background of all key team members. Actual amount of funding requested and a exit strategy is required.
3. FEE AGREEMENT : Please provide all fee agreements if working with any third parties.
4. APPLICATION : We will send it to you later if we accept your initial request.
5. CREDIT AUTHORIZATION: For traditional loans, we require a signed credit authorization request..(Credit reports are $75.00 per principal).
7. USE OF FUNDS: Explanation or a one page Statement on how the funds will be utilized on this project.
8. CORPORATE RESOLUTION: A Corporate Resolution Letter giving you the authorization to sign for the loan.
9. RESUMES – A. Resumes on all principal owners including property management
10. RESUMES – B. Resumes on Architects (if new construction only)
11. RESUMES – C. Resumes on Construction Contractor (if new construction only)
12. COMPANY HISTORY – Provide a History on the Corporation (applicable)
13. CURRENT FINANCIAL STATEMENTS ( 2years Personal & Corporate)
14. TAX RETURNS Personal AS SUBMITTED TO THE IRS
15. APPRAISAL ( We need an MAI appraisal if project is over $250,000Â )
17. COLOR PHOTOS – or (Artist’s rendering color – if new construction only.)
(XEROXED Copies are not acceptable.)
18. DETAILED (P&L) Profit & Loss Statement, for three years on your existing properties.
19. PRO FORMA – Detailed 3year Proforma on the current business or property. (prepared by a CPA)
20. COST BREAKDOWN Detailed cost breakdown for the construction, (new construction only).
21. CORPORATE – Copy of your Partnership Agreement and/or Articles of Incorporation.
22. MARKET DATA Comparable Rentals & vacancy data for the area ( produced by MAI or Outside firm).
” You only get one chance to present your projects for consideration. If your package is rejected due to lack of information or improper formatting, you can not resubmit it. Hedge funds and private investors will judge your project based on it’s completeness. We recommend that you use a professional service to get your project packaged to make the best first impression. You only have one chance. You package is like your resume. It will either open tor close the doors of opportunity. We recommend that you have your project professionally prepared.
Below is a button with more information about why and how to get your package professionally done.”