We carry four connected disciplines from the first review through property operations.
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We screen marketed and off-market opportunities against our current markets, vintage range, unit count and basis. We give brokers direct feedback on fit, pricing gaps, diligence questions and the path to closing.
We review broker materials, operating statements, rent rolls, debt terms and local supply together, not as separate stories.
A current rent roll, a trailing operating statement, recent monthly statements, a debt summary and capital history. If existing financing may be assumed, the note, maturity, balance, servicer and known transfer requirements matter most. Perfect records are not required for an initial response, but major gaps should be named.
An assumption transfers the existing borrower's obligations to a new ownership structure, subject to servicer and agency approval. The buyer submits organizational documents, financial statements, real estate schedules, experience records and background information for the proposed key principals. Property performance and any planned ownership changes are reviewed alongside the new guaranty structure. A straightforward process often takes several months from a complete application, not from the date a contract is signed.
The note rate is only one factor. Remaining term, amortization, maturity exposure, prepayment provisions, reserves, covenants, supplemental loan rights and assumption costs all matter. Favorable debt can lose value if it creates an unworkable maturity, restricts the operating plan or requires more equity than the transaction supports.
A key principal is a person or entity the lender relies on for financial strength, experience, control or guaranty obligations. Lenders compare the financial strength of approved guarantors against the loan amount and required reserves. Net worth generally excludes the subject property and may discount assets that are illiquid or hard to verify. Liquidity means cash and readily marketable assets available after closing. Standards vary by lender, program and transaction.
It fails when senior loan documents prohibit subordinate debt, intercreditor terms are unacceptable, the seller expects control rights the senior lender will not allow, or the combined debt burden is not supported by current operations. It also fails when the parties postpone lender review until late in diligence.
This material is general information, not legal, tax, investment or lending advice. Transaction requirements vary by lender, jurisdiction and property.