PRIVATE LENDING

What to prepare before a property financing conversation

A useful first conversation begins with a coherent project summary.

Describe the property and the purpose

Start with the property location, its current use and the reason financing is being considered. A purchase with planned renovation creates a different sequence of questions from a refinance or a new build. State whether the property is under contract or already owned, and distinguish documented facts from figures that are still being developed.

Separate the capital needs

A purchase price does not describe the entire project budget. Organize acquisition costs, proposed work, professional costs, carrying costs and a contingency separately. Identify what has already been spent and what remains. A clear summary makes it easier to discuss the relationship between the requested financing and the money available from other sources.

Explain the work and its timing

If improvements are proposed, include a written scope and the available contractor information. Identify the present stage of plans, approvals and permits. An estimated schedule should show the events that could change the timing, rather than presenting an early target as a certainty. The completeness of the information matters as much as the appearance of the presentation.

Describe the proposed repayment path

Explain whether the intended outcome is a sale, a refinance or a longer holding period. State the assumptions behind that outcome and the documents supporting them. A preliminary review is a way to establish the questions a transaction needs to answer. It does not establish approval, available terms or a commitment to fund.