10 Items to Have on Hand for the Fastest Financing Possible

When you’re ready to secure financing, we’re here to make the process go as smooth as possible. Having the following 10 items taken care of will help you stave off any last-minute road blocks.

Rent Roll — The rent roll is a critical piece of deal analysis, so you likely already have this on hand. It should include rent rates, unit descriptions, unit square footages, lease terms and lease expiration dates. Ancillary income sources are a bonus.

Operating Statements — Income and expense statements are crucial for sizing a loan. We look for the past trailing 12 months, as well as year-end statements for the previous two years.

Financial Statement & Statement of Liquid Assets — Requirements vary based on the loan, but typically we are looking for verification of net worth equal to the loan amount, as well as nine months of liquid payments on hand.

REO Schedule — A schedule of your real estate owned provides insight into your experience, background and investment appetite. A complete REO will include the property type, ownership structure, date of acquisition, number of units, net operating income, DSCR, LTV and a description of the debt for each portfolio asset.

Specific Property Details — Here you’ll note if there are any tenant concentrations (e.g. student, military) in the property’s submarket. You are also going to need to disclose if the property is subject to restrictive covenants such as affordable or seniors deed restrictions or use agreements.

For Acquisitions: Purchase and Sale Agreement — The agreement should include the sales price, the date the deposit becomes non-refundable, and the required closing date.

For Refinancings: Cost Basis and Length of Ownership — Be sure to include any one-time capital improvements. Prepayment penalty information is also critical when looking to refinance

Availability of a Quick Site Visit — Keep your schedule open for a quick site inspection with your lender and their appraiser and engineer.

Insurance Accords —The quicker you provide your insurance information, the quicker we lender can work with the insurance carrier to ensure proper and compliant coverage.

Identify Counsel — Having legal representation identified and retained will expedite the process of the loan as it pertains to any and all potential legal issues.