How to Prepare a Financial Package for a Commercial Construction Loan

Written by Fernando Martin| September 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.