10 Things Every Buyer Needs – To Close A Commercial Real Estate Loan
Commercial real estate loans are gaining lots and lots of popularity these days since they provide the borrowers with the opportunity to own commercial properties that not only serve as a solid future investment but also provide a steady cash flow at the same time. When it comes to securing a commercial real estate loan, there are things that need to be taken under serious consideration. 10 of the things that are required by a borrower before applying for a commercial real estate loan are discussed below in order to make the acquisition process a bit simpler for you.
- Working statements:
The first requirement is to provide working statements dating back to three years. These statements should reflect the earnings and expenses recorded on account of the operations.
- Lease copies:
Regardless of how many leases you have on your tab, you are required to provide licensed copies for all of them.
- Licensed hire rolls
Licensed hire rolls with the contract’s purchasing date are also required. They need to be up to date as well.
- Estoppel certificates
Signed estoppel certificates from every one of your tenants should also be provided in support of your case.
- SNDA agreements
As per standards, your tenants need to sign subordination, non disturbance and attornment SNDA agreements as well.
- ALTA insurance
You also need to provide ALTA insurance coverage in the name of the lender along with all the essential endorsements.
- Copies of encumbrances paperwork
Paperwork comprising of details on encumbrances regarding related gadgets such as social gathering, restrictions, closing and other agreements should be provided in the form of copies.
- ALTA survey
According to the 2011 minimal customary element, you are obligated to hand over the ALTA surveys as well. These surveys should be titled in the name of the lender.
- Environment evaluation report
Environmental evaluation reports including both section and audit are also needed.
- Inspection Report
In order to get an overview of the enhancements’ structural integrity, an enhancement inspection report must also be handed over.