Appraisal of the property
Be sure that an appraiser specializing in appraising commercial properties appraises your property as well. A good appraiser will provide a wealth of data that ensures the commercial lender knows exactly what your commercial property is worth. Reach out to the commercial lender in question if you’re unsure where to find a good appraiser – they will point you to an appraiser they know will provide them with the information needed!
Environmental site assessment of the property
An environmental site assessment (ESA) essentially shows the environmental problems affecting the commercial property. Only do a Phase I ESA for your commercial mortgage package, which details the types of contaminants in the commercial property. Once done, the Phase I ESA will inform the borrower what must be done to remove all contaminants from the property. A professional will do this for you, and it’s a godsend to lender: seriously, a Phase I ESA that shows it is free of contamination will seriously make the lender feel confident with lending and/or refinancing. If it’s contaminated, work with the ESA professional to get it contamination-free.
Summary of use of property
This will detail how the commercial property is/will be used during the day-to-day operations. Be as detailed as possible to ensure there is no mystery as to what goes on in the commercial property. The less your lender is in the dark about the nature of the business, the more wiling they will be to award you with the resolution you’re looking for.
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