Apartment Finance Due Diligence Resources

Apartment Finance Due Diligence Resources

Organization is crucial to an apartment financing transaction. The otherwise tedious process is only more frustration when investors don't have the documents they need ready and on hand for when lenders request them. We've gone ahead and created some templates and gathered together some of the more widely requested items for investors who may not have such resources on hand.

Financing different types of multifamily housing will often require the same documentation with some slight differences, however this list provides a decent baseline for all apartment financing transactions. While every apartment loan transaction is unique and each lender varies with their requirements, repeat investors should find that these items are consistently what make up a comprehensive loan package.

To be used at your discretion:

Quick Qualification

• Trailing 12 months (TTM)
• Current rent roll.

For Quotes

• Profit & Loss (P&L) Sheet (3-year Range)
• Current rent roll
• Trailing 12-month P&L (month-by-month)
• Personal financial statement
• Stabilized Budget
• Business Organizational Chart
• Personal Financial Statement (for each borrower/investor)

For Closing

• Schedule of Real Estate Owned (SREO)

Having these items ready can help an investor quickly find out if they qualify for a desired LTV, LTC, loan amount etc.. These docs can only help create a very broad picture, but can also give a relatively fast positive/negative result as to the feasibility of a loan in question.

Refinance and underwriting downloads

The two files below come from the other side of the table: what a lender's underwriter asks once your refinance package is in, and what an underwriter looks for in the rent roll you send. Fill in the questions document before you apply and your answers are ready when the lender's list arrives. Run through the rent roll red flags before you send the rent roll, because a lender who finds an unexplained issue first will often size the loan on the worst reading of it. To run those rent roll checks automatically, paste your rent roll into the rent roll analyzer, which runs in your browser and never uploads the file. For the full document list in the order lenders ask for it, use the refinance checklist.