When a prospective borrower contacts ABL, we immediately begin to assess whether the project meets our underwriting criteria. We gather data on the experience level, financial, and credit background of the borrower, the current and future value of the project and will ask for a summary of the proposed deal. We will ask to speak to the borrower/project manager to get a deeper and more comprehensive sense for the scale and scope of the project as described and the level of prior experience that the borrower brings to the table and the financial resources that are available to supplement our loan proceeds.

It is a plus if the borrower, or representative, is prepared with the following crucial information at the point of initial contact: property address, purchase price, rehab or new construction budget, future expected value, payoff strategy (sale or refinance), prior experience, and expected timing of exit. If a proof of funds is needed to help secure the acquisition of the property, we can assist with that as well.

If the loan request meets our basic underwriting criteria, we will ask the borrower to:

• Fill out a loan application.
• Provide a purchase contract for the property.
• Provide a scope of work for the project.

Once the above is submitted, we will schedule an appraiser to inspect and appraise the property. As we proceed, we will ask for additional documentation that relates to the borrower’s experience, cash availability, income, and credit. We will also want documentation regarding the project contractor or builder, property title history and property insurance.

All of our loans are to entities, not to individuals, so we will need to have the formation documents and EIN for the borrowing entity. All the paperwork must be in our possession prior to the close, but we can schedule the close, if needed, under the assumption that some of the paperwork is in process. The faster we receive the necessary  information the faster we can issue a “clear to close”.

We can typically tell the borrower whether, or not, there is a good chance of ASL funding the loan after a 20-minute underwriting conversation after we receive the preliminary paperwork.  However, the information that is conveyed to the underwriter must be verified by an appraisal of the property and associated title work of the property and borrowing entity and any backup paperwork that the underwriter requires to be provided regarding the qualifications of the borrower and project manager for the project.