How to Prepare a Financial Package for a Commercial Construction Loan
Published 09-28-2018
Keep in mind that each Lender has it’s own specific guidelines and that commercial construction loans take quite a bit of diligence before they are approved. This is only meant to be a general list of the items you should consider preparing in advance of contacting Lenders for an investment construction loan*:
General Project Documents
Project Executive Summary, including schedule of Sources & Uses
Status of entitlements and permits (regulatory letters, if available)
Resumes for Architect, General Contractor
AIA bid submission, if available
Feasibility/market study
Marketing plan
Borrower/Sponsor-Related Documents
List of all Sponsors (including spouses) with at least 10% ownership in the property
Personal financial statement (PFS), including a schedule of real estate owned, prepared for each of the above Sponsors
3 years personal and corporate tax returns on each sponsor
Real estate resume for each sponsor
Property-Related Documents
Any available third party reports (appraisal, environmental, engineering, zoning, survey, etc.)
Proforma (including construction, lease-up, and at least 3 years of stabilization)
Project budget (including hard and soft cost items); detailed list of any current debt/equity into project
Site/construction plans
Any executed pre-leases
Borrower organizational documents
Any JV or equity agreements
Franchise agreement (for flagged hotel)
*Please note that this list is for investment construction loans only. For a list of suggested items on stabilized properties, click here. Owner-occupied construction loans follow the substantially similar guidelines to an SBA loan.
