The following is a brief synopsis of required items to refinance or purchase an existing, market-rate apartment building, complex, or portfolio. Financing affordable and other types of multifamily housing will require the same documentation with some additions, however this is a good and complete baseline for all apartment financing transactions. Although every loan is unique and each lender varies with their requirements, one would find that these items are consistently what make up a comprehensive loan package. For the sake of ease, we have broken this into a few sections to break up different parts of the process. We can be reached at any time to elaborate on any items via our secure contact portal by clicking the button below. 

Quick Qualification

Use these items to quickly find out if you qualify for your desired LTV, LTC, loan amount etc.. This will only give a very broad picture, but will also give a relatively fast positive/negative indication as to the feasibility of the loan in question. 

• Trailing 12 month, month-by-month operating statements (P&L).

• Current rent roll.

• Indication that borrower net worth is greater than the loan amount and borrower liquidity is greater than 10% of the loan amount. If otherwise, a discussion would be required along with a PFS (personal financial statement).

Formal Quote

Use these items to get a formal quote or term sheet that your lender can stand behind. These quotes will be subject to full underwriting (of the items in the “Commitment & Closing” section) and completion of all 3rd party reports.  

• Property:

  • Last 3 years Operating Statements (P&L)

  • Trailing 12 month, month by month P&L

  • Current rent roll

  • Summary of capex to date

  • Stabilized budget

  • Property Details

    • Property photos

    • Address

    • Description

    • Unit-mix

    • Age

    • Construction type

• Borrower:

  • Name of entity

  • Organizational chart

  • Personal financial statement for each guarantor*

  • Resume/bio for each guarantor*

  • Property management company info (if not self managed)
    *Any individual owning more than 20% of the GP will be underwritten as a guarantor. LP partners are not underwritten. For guarantors with limited experience a strong property management company will be required.

Commitment & Closing

In addition to the above items listed in the “formal quote” section, the following list describes the balance of document requirements prior to closing. In the course of underwriting and reviewing third party reports, other questions may present themselves and additional documentation or underwriting items may be requested. The following represents the balance of items needed to get to the closing table.    

• Borrower

  • W9 for borrower

  • Final org chart

  • Articles of organization

  • Executed operating agreement

  • Verification of EIN

• Guarantors

  • SREO (form provided)

  • Authorization to release bank and credit information (form provided)

  • Verification of deposits (bank statements)

• Property

  • Current rent roll (all months up to and including closing)

  • Current operating statement (all months up to and including closing)

  • ALTA survey (2021 requirements)

  • Copy of all commercial leases

  • Copy of laundry lease

  • Copy of all service contracts (i.e. trash removal, pest control, landscaping, pool service, etc.)

  • Title (as per lender requirements)

  • Certificates of occupancy (if available)

  • Rental licenses (if available/applicable)

  • Proof of building code compliance

  • Copy of the deed (if available)

  • Zoning letter (if available)

  • Designation of counsel (form provided)

  • Designation of insurance agent (form provided)

• Property Management Company

  • List of current properties managed

  • Executed management agreement

  • Marketing plan (if available)

  • Marketing materials (if available)

  • Sample lease

  • Expenses shared with other properties (if applicable)

  • Payroll analysis (form to be provided)

• Standard 3rd Party Reports

  • Termite inspection (borrower engaged)

  • Appraisal (lender engaged)

  • Phase 1 environmental (lender engaged)

  • PCNA (lender engaged)