Commercial Loans and Fun Blog

The Commercial Loan Executive Summary

Posted by George Blackburne on Mon, Feb 20, 2017

Executive Loan Summary.jpgThis article should help both complete newbies and near-experts in commercial mortgage finance.  I will teach you newbies how to prepare a basic commercial loan Executive Loan Summary.  I will teach you old pro's how to lay out an Executive Loan Summary for a construction mezzanine loan request.  That's just about the most sophisticated loan in our entire industry.  Bottom line:  Prepare to learn a ton.  Even better, I will give you some free exemplars that you can download to your own desktop for future use.

The first item in any commercial loan package should be the the Executive Loan Summary.  Following the Executive Loan Summary should be a picture page that contains a description of the property (with lots of sizzle) and several attractive color pictures taken on a sunny day (or an Architect's Rendering if this is a construction loan).  Next comes the Pro Forma Operating Statement and then the Schedule of Leases or Rent Roll.

The easiest way to teach you how to prepare an Executive Loan Summary is to give you an exemplar.  Please open this basic commercial loan Executive Loan Summary right now.  If you download it to your desktop, you can easily edit it using Word on your next commercial loan.

Please note that this Word document was written using a Courier font.  Courier is a proportional font, and when you use a proportional font, all of your columns will line up nicely.




Commercial construction loan Executive Loan Summaries are a little more involved because they include a construction cost breakdown and the Loan-to-Cost Ratio.  In construction lending, the Loan-to-Cost Ratio is far more important than the Loan-to-Value Ratio.  Please note in the Cost Breakdown we always include a Contingency Reserve equal to 5% of Hard Costs and Soft Costs.  Please click here to view a Construction Loan Executive Loan Summary.




Finally we come to the Executive Loan Summary for a construction mezzanine loan.  By the way, a construction mezzanine loan is simply a mezzanine loan used in conjunction with a construction loan.  A construction mezzanine loan might take the capital stack up from a 60% LTC construction loan up to 80% LTC.  Confused?  Just think of a construction mezzanine loan as a second mortgage behind a construction loan.

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When I write these blog articles, I try hard to use simple, layman's English and slang.  I also try to use lots of examples.  Are you ready to finally learn commercial real estate finance?


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Topics: Executive Loan Summary