may have a website . If they are individuals , they may have a presence on LinkedIn . Does the borrower have a promotional summary about themselves ? Add these items to the executive summary sent to the lender . Positive promotional material will add credibility to the prospective borrower .
The above information is sufficient for the loan agent to write an executive summary and email it to a prospective lender . Then , follow up with a phone call .
• Loantovalue : LTV ratio total loans divided by appraised property value ( APV )
• Description of collateral property .
• Property address
• Exit strategy : What are the borrower ' s plans to repay this loan ?
• Rental income stream ? What gross rents , vacancies , and expenses are required to determine net operating income , often called NOI ? The NOI calculation excludes debt service . Will the NOI cover the loan payments and property expenses ?
• Most recent payment statement ( s ) Please obtain .
• When was the property purchased , and for how much ?
• Have they made any significant improvements or upgrades ? Please provide a list of upgrades and costs .
• Pictures of the outside and inside : In most cases , pictures are found online , with Zillow , Redfin , Realtor . com , and Trulia . Photos of the inside and outside are necessary if the property has undergone significant upgrades that enhance its value .
• Is the property owner / borrower a private individual ( s ) or an entity ? If an entity , what is the purpose of the enterprise ?
• If the property is newly or partially reconstructed , inside and out pictures are necessary , as well as a list of improvements , costs , and what improvements remain to be completed .
• Any exceptional circumstances ?
Weaknesses in the transaction include a history of late payments , significant arrearages in payments , accrued unpaid property taxes , outstanding judgments and liens , state and federal taxes due , probate sales , bad credit , open bankruptcy , pending divorce proceedings , tax liens or judgments , the property has a recorded notice of substandard condition , red tagged for code violations , successor trustee acting on behalf of a family trust , multiple borrowers , multiple crosscollateralized properties , etc .
• Forward the prospective borrower a loan application and authorization to obtain credit . Request the most recent property loan payment statement and at least three months of bank statements . Use a commercial loan application rather than a 1003 residential form when possible .
• Ask for a handwritten purpose of the loan letter .
• Does the borrower have an online presence ? If they are a company , they
Stage II : Driving the loan process forward :
• Private money vs . institutional lenders have different borrower requirements , requiring tax returns , recent pay stubs , w2s , and 1099s .
• Profit , loss , and financial statements are necessary if the borrower is an operating entity . Two data sets , one for personal and one for business , may be required separately .
• In addition to a borrower ’ s signed letter of interest , loan application , and credit authorization , the agent will need other data , such as a property owner family trust document , an operating statement for a limited liability company ( LLC ), insurance broker contact information , and association management company contact information .
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