GuidesPlex and multi-unit
Multi-unit refinancing: required documents
Rents, expenses, current debt and use of funds.
An up-to-date rent roll, unit by unit
Signed leases and rent increase notices
Expenses for the last two years
Documents to gather
- An up-to-date rent roll, unit by unit
- Signed leases and rent increase notices
- Expenses for the last two years
- The current loan balance and maturity date
- A note on the intended use of funds
What carries the most weight
Actual rents outweigh projected rents. A vacant unit reduces the amount granted.
What the rent roll reveals
It shows income, but also tenant turnover and units rented below market.
A building stable for years reassures more than one recently re-rented.
Explaining the use of funds
- Work on the same building, with invoices
- Buying another property, with the offer
- Repaying costlier debt
- A cash reserve, justified in writing
The timeline
Allow six to ten weeks. The appraisal alone often takes two of them.
What speeds up the review
- A rent roll in the same format as the leases
- Expenses grouped by item and by year
- A one-page note explaining the request
- Bank statements covering three full months
A readable request moves faster than a complete but confusing one.
