What this guide helps you evaluate
Commercial property buyers or owners financing an acquisition, renovation, lease-up or short-term transition.
This page is designed to help you compare the moving parts, organize due diligence and ask better questions before you commit money, sign a contract or change an operating process.
What to compare first
- Loan-to-value and loan-to-cost
- Debt service coverage and in-place versus stabilized NOI
- Interest reserve, origination fees and exit fees
- Recourse, guarantees and completion obligations
- Credible exit through sale, permanent refinance or stabilization
Step-by-step process
- 01
Prepare sources and uses, purchase contract, rent roll and trailing operating statements.
- 02
Build a property-level budget showing renovation, carry and contingency.
- 03
Document the exit strategy with realistic timing and refinance assumptions.
- 04
Request lender quotes using the same loan amount, term and extension assumptions.
- 05
Complete appraisal, environmental, title, insurance and legal due diligence before closing.
Common mistakes and risk checks
- Underestimating interest carry or construction delays.
- Using stabilized NOI without a lease-up sensitivity case.
- Assuming a future permanent refinance will be available on today's terms.