2023 Commercial Real Estate Loan Documents: Forms and Templates

An analysis of commercial real estate investment is essential for a lender to determine an individual's creditworthiness for a commercial property loan. This is true, regardless of whether they are financing retail, industrial, apartment, or office properties. Many underwriting factors are considered when a commercial mortgage broker arranginges the financing for a real estate investment: the credit history, collateral, financial state of the individuals behind the loan, historical financials, DSCR, loan ratios, expenses, debt yield, loan constant, and more. 

Because we know how time-consuming compiling such documentations can be, we've provided a list of basic, user-friendly, and secure templates for you to download and edit according to your needs. These standardized templates represent the industry standard in commercial real estate financial analysis. Click on the name of the document or corresponding image to download the specific form or template.

Personal Financial Statement (PFS)

The personal financial statement (PFS) is a disclosure of an individual's financial information, including their assets (both liquid and illiquid), liabilities, and net worth. This allows the lender to analyze the creditworthiness of the borrowing entity and the individuals behind the entity, to ensure that they have the financial wherewithal required for the size of the loan requested.

Historical Financials

Historical financials generally include the last three-year P&L (or operating statements), as well as a year-to-date P&L. They allow the lender to assess the property's historical operations and analyze driven-down expenses and income. This also provides a template for completing a commercial property appraisal to compare actual income and expenses to market income and expenses.

Lease Expiration Schedule

The lease expiration schedule is a breakdown of when leases expire in a building. It gives a lender (and investor) an idea of potential risk in future years. For example, if a property was leased out entirely in the year 2010 and all the leases were 10-year leases, in the year 2020, if none of the tenants choose to renew, the building would be vacant. This is a huge risk for a commercial property lender that is considering making a five-year loan in the year 2018. They would risk having a vacant property two years into the loan. The lease expiration schedule (or lease roll schedule) identifies these risks associated with expiring leases.

Organizational Chart

An organizational chart can be very simple or extremely complicated. In the case of a single-asset entity that is 100% owned by an individual, the chart is simple. But, if ownership is layered through multiple LLCs, trusts, limited partnerships, etc., a small organizational chart starts to look like a tree—or even a forest. Regardless of how simple or complex your organizational chart is, it provides the necessary transparency that a lender requires to know all the individuals behind a commercial real estate loan proposal. This is important not just for underwriting, but also for things like anti-money laundering and anti-terrorism industry best practices.

Rent Roll

Rent roll is a representation of who is renting the property and the terms of their leases. It essentially synopsizes the potentially dozens of leases—which may be 20, 30, or even 100 pages—into a clear and neat one-pager. Not only does it show the rental income, but it also provides an array of information, like the tenant name, lease start date, lease end date, CAM reimbursements, deposits, rented square footage, etc. A rent roll is a complete synopsis of the tenancy of a commercial property. 

Schedule of Real Estate Owned (SREO)

The schedule of real estate owned (SREO) is a schedule of information detailing all the properties owned by an individual (in this case, an individual signing a commercial real estate loan). A proper SREO (like the one linked to here) identifies cost basis, as-is valuation, percentage of ownership, total debt, total equity, debt service, NOI, and of course the amount of contingent liabilities existing due to outstanding personal guarantees associated with full-recourse commercial loans.

Sources-Uses

One of a lender’s most common requests when reviewing a loan request is the "sources/uses." In commercial real estate lending, the sources-uses form essentially lays out all the sources of funds (i.e., owner equity and first mortgage loan), which generally equal the purchase price, the as-is value, or the total cost (depending on the type of project being analyzed). The use of funds refers to where the money is going (purchase price, rehab costs, closing costs, escrows, construction costs, loan fees, etc.).