• 1031 exchange letter (if applicable)
• Information and/or copies of leases
• Rent roll (if applicable)
• If vesting is held in a trust, pertinent copies of the declaration of trust

If vesting is held in an LLC, the following are required:

• Articles of organization
• Executed operating agreement
• Certificate from secretary of state

If vesting is held in a corporation, the following are required:

• Articles of incorporation
• Certificate of good standing
• Resolution to borrower

If vesting is held in a partnership, the following are required:

• Partnership agreement
• Recorded certificate of partnership
• Recorded LP-1 statement (for limited partnership only)

Most of this information should be easily obtainable if borrowers are organized. If the information is provided in a timely fashion, appraisers will generally complete their assignments on time as well. The drawing of the loan documents and the closing should come soon after the commitment.

A cohesive working relationship among the borrower, broker and lender will provide a satisfactory experience for all involved. All parties have the same goal — fund the loan as soon as possible. Paying close attention to the details upfront can make it a “win-win-win” situation.

Lee Fenn is senior vice president and chief lending officer for Provident Savings Bank FSB, a $1.6 billion-asset, full-service bank located in Riverside, Calif. He is responsible for asset generation via commercial and multifamily real estate loans, as well as for all business-banking functions. He has been in commercial banking since 1972. He can be reached at lfenn@myprovident.com or (951) 782-6190.

Page: 1 2 3 Previous