Sponsor net worth and liquidity reviews

Commercial lenders underwrite the property and then ask who stands behind the promises the property cannot keep. Net worth is assets minus liabilities on the sponsor's and guarantor's statements. Liquidity is the slice that is cash or can be sold quickly without moving the real estate that is already the collateral. Experience is the record of owning or operating this property type. Capital Market Funds arranges the loan and collects the schedules lenders ask for. It does not publish a minimum net-worth multiple or a minimum months-of-debt-service figure. Any number you have heard is that lender's box, on that day, for that asset. Printing it here would turn a credit policy into a fake rule.

Statements should be current, signed, and clear about what is included. Equity in the building being financed is not liquidity. Equity in other real estate is net worth only if the debt against it is shown. A closely held company's cash is not the guarantor's cash unless a distribution can actually be made. Personal financial statements that omit contingent liabilities, including other guaranties, get sent back. Global cash flow, if the lender asks for it, ties the properties together. It is not a consumer mortgage application, and these pages are not for a home the sponsor will occupy.

Recourse decides how hard the schedule is pulled

A full-recourse loan makes the guarantor liable for the debt. Lenders then care about the whole balance sheet because they may pursue it. A non-recourse loan limits the lender to the property, except for losses caused by named bad acts. Those exceptions are a carve-out guaranty, sometimes called a bad-boy guaranty. The guarantor still signs. The personal guarantee note and the carve-out note describe that structure. Liquidity matters on a non-recourse deal because the guarantor may have to fund taxes, insurance, a debt-service shortfall, or a completion overrun even when the principal is non-recourse. Net worth matters because the lender wants a person who can survive that funding without a bankruptcy that triggers the carve-outs.

Experience is the third screen. A first-time owner of a grocery-anchored center will be asked who manages the property and who has leased shops through a co-tenancy problem. A sponsor with a stack of similar assets will be asked whether those assets are already pledged and whether they need cash at the same time. Neither answer produces a ratio on this page. Grocery-anchored centers is the property context. The guaranty is still personal to the people who sign it.

What to include in the first sponsor package

A personal financial statement for each guarantor, a schedule of real estate with debt and maturity, a liquidity statement that lists where the cash sits, and a short biography of relevant properties. If an entity guarantor will sign, add its statements and the ownership chart up to the warm bodies. Do not send a teaser that shows only the upside case and a net worth 'in excess of' a round number with no statement behind it. Lenders will ask for the statement anyway, later, when the calendar is worse.

The office is 7373 E Doubletree Ranch Rd #255, Scottsdale, AZ 85258. The phone is (480) 495-8072. Capital Market Funds, LLC - CBK-2007014 - Commercial Mortgage Banker and NMLS 1445066. Submitting schedules is not a guaranty and not an approval. The lender sets whatever net-worth and liquidity conditions end up in the commitment, if one is issued.