Please provide a brief executive summary which includes the following initial information to ensure quick consideration by Sterling Commercial Capital of the loan submission.
1. Brief executive summary describing
(a) the transaction – purpose, loan amount, term, LTV, DSC, preferred closing date, etc.
(b) the property – location, type, size in sf, units, % occupancy, year built, land size in acres, condition, significant issues,
(c) the borrowers – bio, background, experience, BK or other issues.
2. Current rent roll, including all vacant sf/units so it adds to 100% of sf/units.(even if 100% owner occupied)
3. 2009 and 2010 property P&L
4. y-t-d property P&L
5. Personal financial statement of each principal
6. Credit info on each principal; i.e. “low 700’s” or “high 500”s, etc. or complete credit report showing all 3 credit scores
7. If purchase, purchase and sale agreement
8. Detailed sources & uses of funds schedule
9. 6 color photos showing exterior and interior
10. if completed all 3rd party reports; appraisal, environmental, property condition
AT THIS TIME, WE DO NOT WANT TAX RETURNS, BROKER AGREEMENT. BE SURE EACH ATTACHMENT HAS A LABEL THAT ID’S THE FILE. i.e. 2010P&L.pdf and NOT 23456345.pdf
Your timely attention to these details will result in a timely response.
Loan Application /Letter of Intent:
If the initial emailed offer from Sterling Commercial Capital to the borrower is acceptable, a formal Letter of Intent will be issued for signature. After executed, additional documentation will be necessary. A detailed checklist will be issued at that time.
Borrower: personal financial statement, experience, present portfolio, and credit history.
Exit Strategy: for a bridge loan, details the planned exit, which will be verified and feasible.
Sources and Uses of Funds: Detail the sources of funds, and list of where the funds, including the proposed loan, will be applied.
Equity: Detail the source(s) and amount of cash and/or equity to be provided by the borrower.
Rent Roll: If occupied, and as applicable, current rent roll, showing each tenant, lease start and end dates, square feet occupied by each tenant, square feet vacant, rent per month, per year and per sf, gross or net, CAM pass-throughs and escalations, etc. Also show vacancies for 100% of building’s square feet. For multifamily, show occupied and vacant units with 100% unit count.
P&L: Last 2 years profit and loss statement, and year-to-date profit and loss statement. For hotels, also provide 12 months of rolling revenue, ADR and % occupancy. Submit Proforma budgets on projects under conversion or renovation.
Loan Default: Describe any default, bankruptcy, DIP, note buy-down, or other unusual circumstances.
Liens, Judgments, Foreclosures, etc: disclose all up front.
Location: Provide a locator map and site plan.
Appraisal, Environmental and Engineering Reports: Although not required with the preliminary submission, if they are available, please include only the opinion or conclusion page(s).
Broker’s Fee: Brokers should establish a separate fee agreement with the Borrower and STERLING COMMERCIAL CAPITAL will protect the broker’s fee up to 2% payable at closing from loan proceeds.