Your scenario checklist: what to send the desk

A scenario is how you start a conversation with the desk. It is a preliminary inquiry: you send us the details of a deal, and we come back with terms or with questions. There is no credit pull at this stage, and nothing is committed on either side.

The more complete the scenario, the less back and forth. This week we covered the numbers behind a deal one at a time. Here they are as a single checklist.

1. The address and the program

Send the property address and the program you have in mind, such as Fix & Flip or Rental Loan (DSCR). If you are not sure which one fits, say so.

2. The cost side

Include the purchase price and your renovation budget. A budget broken into stages, with bids or sources behind the figures, is easy for the desk to read. Cost is what LTC is measured against.

3. The value side

Give the as-is value and your expected after-repair value, how you arrived at each, and the comparable sales behind them. Comps should match your property on area, size and finish level, and be recent. The appraisal confirms value during underwriting, so a well-supported starting point helps. If you used the 70% rule to screen the deal, include that too, and the program limits will show how the loan could be sized.

4. The rental side

If the property will be a rental, include the expected rents or income. Rental programs look at leverage and at DSCR, so the income figures matter as much as the value.

5. You and the entity

Tell us about your track record: past projects, what you did and how they turned out. First-time investors are eligible, with the caps we covered earlier. Also tell us which LLC or corporation will hold title.

What happens next

Scenarios are reviewed by the desk in the order they arrive. The person who reads yours stays with it through closing and remains your point of contact. If a scenario does not fit the program, we will say so plainly, with the reason. A no is worth having early.

Program figures are indicative only and subject to complete documentation, underwriting, appraisal and final credit approval. A scenario is a preliminary inquiry only. It is not a credit or loan application, commitment to lend, loan approval, rate lock, or guarantee of financing. This post is general information, not financial or legal advice.