Present the property, cash flow and business plan clearly so a lender can assess the request and identify key questions.
What a lender screens first
An initial lender review establishes whether the sponsor, property and financing request fit the program. A concise summary helps the lender decide what further analysis is needed.
Start with the sponsor and ownership. The lender wants to know who owns the property, who signs the loan and what experience stands behind them. A short description of the ownership entity, the principals and their other multifamily holdings provides a useful starting point.
The property summary comes next. State the address, unit count, year built, unit mix, occupancy and purchase price or current basis. The lender should be able to picture the asset without opening an attachment.
State the financing request clearly. Say what the loan is for: an acquisition, a refinance, a cash-out or a renovation plan. Give the leverage you want (the loan as a share of value), the term, the payment structure and the date you need to close. A clear purpose and a realistic timeline let a lender judge fit against its program.
The documents that carry the review
A current rent roll, operating history, rent schedule and capital plan form the core of many multifamily financing packages. Lenders may request additional information based on the property and program.
- The rent roll lists every unit with its type, size, tenant or vacancy status, current rent, lease dates and deposit. Date it so the lender knows which day it describes.
- The trailing operating statements show monthly income and expenses, usually for the trailing twelve months. Add prior years if you have them.
- The rent schedule sets current rents beside the rents you project, with the support for any increase.
- The capital needs list covers completed work, deferred maintenance and planned improvements, each with a cost and a timeline.
How lenders read the numbers
Lenders use these documents to assess cash flow, collateral value and repayment capacity. Four common measures are outlined below; definitions, adjustments and minimums vary by lender and program.
Net operating income (NOI) is rental and other income, less vacancy and operating expenses, before debt service. Lenders rebuild it with their own vacancy, expense and reserve assumptions, so their figure can differ from yours.
Debt service coverage ratio (DSCR) compares income to loan payments: DSCR = NOI / annual debt service.
Loan-to-value (LTV) is the loan amount divided by the property's value. Value usually comes from the lender's appraisal and can differ from your purchase price.
Debt yield is NOI divided by the loan amount. It measures property income relative to principal without using the interest rate or amortization schedule.
Run all four on your own figures before you send the package. This helps identify potential loan-sizing constraints before lender underwriting.
Consistent records and a clear package
Review the records for consistency and explain differences before submitting the package.
Reconcile scheduled rents on the rent roll with reported rental income and cash collections, allowing for timing differences, arrears and concessions. When the rent roll implies one level of income and the statements show another, write a short note that explains the gap. Use one unit mix everywhere: the summary, the rent roll and the rent schedule should count the same units in the same categories.
Explain vacancy and concessions before a lender asks. Give a reason for each vacant unit, such as renovation, turnover or a pending eviction. List any concessions with their start date and whether they continue.
Organize the package around a concise opening summary. Lead with a one-page summary of the sponsor, the property, the request and the headline figures. Follow it with the rent roll, the operating statements, the rent schedule and the capital plan. Put supporting documents after those.
Why packages stall, and where an advisor helps
Common delays arise from incomplete information and unresolved inconsistencies. The rent roll and the operating statements disagree. The request is vague about purpose, leverage or timing. Vacancy and concessions have no explanation. The unit mix changes from one document to the next. The closing date leaves little time for the lender's third-party reports.
Kiser works as an advisor and intermediary. Lenders make the credit decisions and fund the loans. An advisor helps in three places.
Lender selection comes first. Programs differ on property type, loan size, leverage, term and recourse, so outreach should focus on capital providers whose criteria fit the request.
Positioning comes second. The summary leads with the property's strengths and names its weaknesses plainly.
Process management comes third. An advisor coordinates lender questions, tracks outstanding items and manages communication through term sheets, underwriting and closing.
A checklist before you send
- The one-page summary states the sponsor, the property and the request, including leverage, term and timing.
- The rent roll and the operating statements are current, complete and dated.
- Scheduled rents, reported income and cash collections are reconciled, with material differences explained.
- One unit mix appears in every document.
- Each vacant unit and each concession has a stated reason.
- Current rents, proposed rents and capital needs come with supporting detail.
- You have run NOI, DSCR, LTV and debt yield on your own figures.
Start a conversation with Kiser about the property and the financing request. Share a brief property summary, financing objective and timeline to begin. Detailed financial records should be provided through the agreed secure channel.
This briefing is general information, not financial, legal or tax advice. Loan terms and availability depend on lender approval and market conditions.