Loans > Commercial Financing and Interviewing the Developer
Commercial Financing and Interviewing the Developer
The Wise Mortgage
Banker Asks the Right Questions Before Investing Too Much Time
a developer begins his search for a commercial construction loan. His
construction lender or commercial mortgage banker will have some important
early questions. The wise developer will be prepared for them.
- What is the reason,
if any, that local bank financing could not be obtained?
- Who else are
you working with and why can’t
they get your project funded?
- Do you have a previous
background in developing this size and type of project before?
- Do you
have an independent, third party feasibility study that says that this
development is a good idea?
- Do you have control
of the land, by what means, and for how long?
- What are the total
hard and soft costs for all phases (in USD)?
- How much of your own
money have you put in or are going to put into this project?
- What is
the combined net worth of all Principals who own at least 10% of the
project? How much is liquid?
- Will all Principals
provide current Personal Financial Statements? Will they guarantee
- Do you have all government
approvals? What approvals remain?
- Do you have preliminary
- What is the name of
the project? What is the location?
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