Preparing for A Commercial Real Estate Loan

Preparing for your loan is important! Here is everything you can expect to provide when applying for a loan with CALCAP Lending!

There are many steps involved in the process of investing in commercial real estate. Once you have identified your property and plan of action, the first step is to obtain financing. The type of lender you choose will determine the timeframe and documentation needed for approval. Most private money lenders will require less income documentation than banks or institutional lenders, but it is still highly beneficial to prepare for your loan and have your strategy clearly defined.

Here is everything you can expect to provide when applying for a loan, however, depending on the lender, this list may vary.

  • Schedule of real estate owned, including positive or negative net operating income (NOI) and any existing debt coverage

  • Resume/bio along with your track record calling out the assets you've owned, retained, and flipped helping to paint a picture of your experience in the asset class in which you're pursuing a loan

  • Historical and/or anticipated sources and uses of money spent, as well as future funds to be invested

  • Personal financial statement (PFS)

  • Bank statements evidencing cash needed, as well as additional liquidity to support funds for the specific transaction

  • Explanation of any derogatory credit history to be addressed up front

  • If it is a purchase transaction, a copy of a purchase agreement or copy of anticipated terms

  • Insurance policy

  • Entity documents if holding title in an entity name

  • Articles of organization/incorporation

  • Operating agreement/bylaws

  • Certificate of Good Standing dated within the last 90 days

  • IRS EIN letter

  • Exit strategy defining your plans (short term or long term) to pay off the subject mortgage

  • 12 month payment history if this is a refinance

Other general items lenders may require:

  • A valid photo ID

  • Credit authorization form

  • Signed letter of intent (LOI)

Specific programs may also require additional documentation depending on your property and strategy. See examples below:

Ground Up/New Construction

  • Plans/specs

  • GC information (resume, experience, GL insurance, workers comp insurance or exemption letter of explanation (LOE))

  • Survey/plat map

  • Construction budget

  • Permits/entitlements

  • Builders risk insurance


  • T12 and T3 previous 12 months and most recent 3 months P&Ls

  • Broker OM if available

  • Rent roll for 12 months

  • Rehab budget if value-add

  • Property proforma

Fix and Flip

  • Plans/specs and GC information is required for heavy rehab only

  • A rehab budget for the scope of work to be completed

  • Permits if required for the specific project

    The experts at CALCAP Lending can guide you through any of the above loan programs, preparing you for a hassle-free process.

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About CALCAP Lending

A division of CALCAP Advisors, CALCAP Lending benefits from the expertise of a seasoned team of professionals with extensive, successful track-records covering a variety of disciplines and leading large, nationally-recognized institutions. A private money direct lender, CALCAP Lending provides short to mid-term financing for property investors and businesses looking to purchase, refinance, renovate, and construct residential or commercial properties.

Lending FAQs

You've got questions, we've got answers.

What is private money lending?

Private money lending is a collateral-based lending strategy that is often associated with shorter terms and more attractive features. A private money loan offers more flexibility than a conventional mortgage or bank loan.

How does a private money loan work?

Private money lenders provide financing using money from private entities. Private money loans often work as bridges to help investors gather funds to achieve their short term real estate goals, but long term, permanent options may also provide.

Why would I choose a private money lender?

There are many advantages to using a private money lender for your real estate investments! Private money lenders can be more lenient when it comes to borrower credit issues, often there are no prepayment penalties, you can leverage your cash to buy multiple properties, and private money loans are quicker when compared with institutional loans.

Can I get prequalified for a loan?

CALCAP has a responsive loan team who are able to prequalify you. Contact a loan specialist at 833.816.5580 to get started.

How long does the lending process take?

Private money lending can be a quick and painless process. From start to finish, 30 days is common, however, turn around times can be as short as 10 business days.

Can I still be approved for a loan if I have bad credit?

Generally yes, we understand that people have temporary financial issues that come up, and we want to work with you to help you rise up financially to a better place. Offsets to credit concerns may include experience as a real estate investor, good cash reserves, and/or larger down payments.

I am a broker or investor, how can I work with CALCAP?

Business is built on relationships. Ours is no different. CALCAP Value and Preferred Partners receive exclusive rates and services. For more details and to submit your application, visit our partners page.

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