10 Items to Have on Hand for the Fastest Financing Possible
In today’s constantly evolving market environment, partnering with a lender that can balance prioritizing speed of execution with tailored solutions makes all the difference in securing the financing you need. Arbor’s experience, expertise, and innovation, combined with our willingness to understand each deal and work to make it successful, set us apart from other multifamily lenders. In our more than three decades of closing deals, we’ve found that having these 10 items on hand at the beginning of your borrowing journey helps prevent roadblocks and streamlines the entire financing process.
The Essential 10: Your Fast-Track Financing Checklist
- Rent Roll
The rent roll is a critical piece of deal analysis, so you likely already have it readily available. However, ensure your rent roll is comprehensive and current. It should include rent rates, detailed unit descriptions, square footage, lease terms, and lease expiration dates. Including ancillary income sources is a valuable bonus that can strengthen your application and provide a more complete picture of the property’s revenue potential.
- Operating Statements
Income and expense statements are crucial for proper loan sizing and underwriting. We look for the past trailing 12 months, as well as year-end statements for the previous two years. Additionally, have your operating budget prepared and know the amount of capital expenditure you’ve completed. While these items aren’t always necessary for an initial quote, they’re often essential to securing the best possible financing terms.
- Financial Statement & Statement of Liquid Assets
Requirements vary based on the specific loan program, but typically, we look for verification of net worth equal to the loan amount, as well as nine months of liquid payments on hand. Having these documents organized and current demonstrates your financial capacity and helps expedite the underwriting process.
- REO Schedule
A comprehensive schedule of your real estate owned provides valuable insight into your experience, background, and investment appetite. A complete REO schedule should include the property type, ownership structure, date of acquisition, number of units, net operating income, debt service coverage ratio (DSCR), loan-to-value ratio (LTV), and a description of the debt for each portfolio asset.
- Specific Property Details
Document any unique characteristics of your property and its market. Note if there are tenant concentrations such as student housing or military personnel in the property’s submarket. You’ll also need to disclose if the property is subject to restrictive covenants such as affordable housing or senior housing deed restrictions or use agreements, as these can significantly impact financing options.
- For Acquisitions: Purchase and Sale Agreement
If you’re acquiring a property, have your purchase and sale agreement ready. The agreement should clearly outline the sale price, the date the deposit becomes non-refundable, and the required closing date. This information is essential for structuring the loan timeline and ensuring we can meet your closing requirements.
- For Refinancings: Cost Basis and Length of Ownership
For refinancing transactions, be prepared to provide your cost basis and length of ownership. Include any significant one-time capital improvements you’ve made to the property. Prepayment penalty information from your existing loan is also critical when evaluating refinancing options and timing.
- Availability for a Quick Site Visit
Keep your schedule flexible for a prompt site inspection with your lender and their appraiser, and the engineer. Being available for these inspections when they can be scheduled helps maintain momentum in the financing process and prevents delays.
- Insurance Accords
The sooner you provide your insurance information, the faster your lender can work with insurance carriers to ensure proper and compliant coverage. Having current insurance accords readily available helps expedite this often time-sensitive aspect of the closing process.
- Identify Legal Counsel
Having legal representation identified and retained early in the process will expedite loan completion in the event of any potential legal issues. Experienced real estate counsel familiar with multifamily transactions can help navigate complex documentation and closing requirements efficiently.
How Arbor Works Quickly to Secure Financing for Borrowers
We’ve successfully navigated complex financing scenarios, from strategic solutions amid Florida’s challenging insurance landscape to closing HUD loans during periods of market uncertainty. These experiences have refined our ability to identify potential obstacles early and develop creative solutions that keep deals moving forward.
Borrowers also have access to ALEX+ — Arbor’s proprietary technology platform that revolutionizes the multifamily financing process by enabling clients to quickly upload documents while allowing our team to review and access information seamlessly. This innovative system eliminates traditional bottlenecks in document collection and review, providing real-time visibility into loan progress and ensuring nothing falls through the cracks.
Key Features of Working with Arbor
From bridge financing to permanent financing and servicing, Arbor will be with you every step of the way for the life of your loan and future loans, by offering:
- Quick Access to Capital: Our streamlined process from application to closing is designed to meet your timeline requirements without compromising on thoroughness or attention to detail.
- Competitive Financing Terms: Arbor strives to provide you with the best possible interest rates and terms, leveraging our relationships and market expertise to secure favorable conditions for your projects.
- Commercial Real Estate Experts on Demand: Enjoy efficient and transparent communication throughout your loan process. Our team of experienced professionals understands the nuances of multifamily financing and can provide guidance and solutions when challenges arise.
Arbor is Your Efficient and Strategic Financing Partner
We invest in relationships because we understand that multifamily financing is about more than just individual transactions. We appreciate that every deal is different, and we pride ourselves on being nimble, knowledgeable, and proactive in our approach. When you work with Arbor, you’re not just getting a lender — you’re gaining a strategic partner who’s invested in your long-term success. Our goal is to help you build and expand your portfolio with financing solutions that support your investment strategy and business objectives.
Ready to experience the difference that preparation and partnership can make in your next multifamily financing transaction? Contact us today to discuss how we can help streamline your financing process and support your investment goals.
Interested in the multifamily real estate investment market? Contact Arbor today to learn about our array of multifamily, single-family rental, and affordable housing financing options or view our multifamily articles and research reports.