Since this question comes up again and again, here is a brief summary of the essential data required in the first step. Of course, this list is not exhaustive and may vary depending on the investor. Of course, further questions will arise during the due diligence and additional documents will be required.
The important thing is that the banker understands your project right away, can comprehend your intention and background, and considers the concept to be so coherent that he can assume that there will be no difficulties (including in communication) or delays in repaying the loan.
The first step for the real estate financing request
Therefore, in the first step, you should outline the project in a short teaser with the main parameters. These include a property description with the exact address, the background of the sponsor/real estate project developer/buyer, company presentation if available, construction costs or purchase price, desired loan amount and type, information on building permits, exit, and previous financing partners.
Please keep in mind that investment managers also prefer well and attractively prepared documents, from which all essential parameters can be seen at first glance. \
For more information, here is our checklist:
Real estate entity information
A detailed description of your project incl. photos
Information on building law (preliminary building application, development plan, building permit)
Purchase contract or contract for the purchase of land
Land register excerpt, building plan, cadastre, flight map/site plan, real estate register
The valuation report, soil expertise, contaminated sites, and building encumbrance register, if available
Building description
Area calculation NGF, BGF as well as cubature (BRI)
Pre-letting/pre-sale rate
If applicable, information on the operator
If applicable, list of tenants
Real Estate Developer/Borrower Information
History - track record of the project developer/buyer.
Presentation of the project organization and company organization chart
Cost breakdown according to DIN 276
Annual financial statements, excerpt from the commercial register, articles of association, list of shareholders
Information on the management of the property company
Financing structure
Collateral
Credit information
Loan amount and type (in phases, if applicable)
Financing plan incl. terms (debt, equity, mezzanine capital, etc.)
Equity capital of the project developer (proof)
Business plan - 3 scenarios, liquidity plan
Presentation of the total financing
Cost overrun guarantee
Information on exit or redemption
Information on existing term sheets or other capital commitments