A commercial loan request memo states the financing request, then proves it: the property, the underwritten cash flow, the leverage and coverage, the sponsor, the business plan, and the risks with mitigants. The template below gives you every section in the order credit officers read them. Copy it, fill it from one underwriting record, and keep it under five pages.
How lenders read a memo
A credit officer or originator usually decides in the first two minutes whether to keep reading. They are checking three things:
- Is it in our box? Loan size, asset class, geography, leverage, structure. See lender box.
- Does the cash flow support the loan? DSCR and debt yield on in-place NOI.
- Is the sponsor credible? Experience, net worth, liquidity.
So the memo leads with a summary that answers all three, and every later section is supporting evidence.
The template
Copy the outline below. Replace the bracketed prompts.
LOAN REQUEST MEMO
[Property name] | [City, State] | [Date]
Prepared by [Broker name, firm] for [Lender name]
1. REQUEST SUMMARY
Loan amount: $[ ]
Purpose: [Acquisition / Refinance / Construction / Recapitalization]
Property: [Asset class], [units / SF], [year built / renovated]
Location: [Address, submarket, MSA]
Value / cost basis: $[ ] ([source: purchase price, broker value, appraisal])
LTV / LTC: [ ]%
Underwritten NOI: $[ ]
DSCR: [ ]x at [rate assumption, amortization]
Debt yield: [ ]%
Term requested: [ ] years, [ ] years interest-only, [ ]-year amortization
Recourse: [Non-recourse with standard carve-outs / Partial / Full]
Sponsor: [Name], [one-line track record]
Target closing: [Date]
2. TRANSACTION OVERVIEW
- What is happening and why now
- Sources and uses table
- For refinance: existing lender, balance, rate, maturity, reason for refinance
3. PROPERTY DESCRIPTION
- Physical: site area, buildings, unit mix or tenant mix, parking, condition
- Recent capital improvements and planned capex
- Third-party reports available (appraisal, PCA, Phase I)
4. LOCATION AND MARKET
- Submarket vacancy, rent trends, new supply
- Demand drivers: employers, transport, demographics
- Rent and sale comps vs. the subject
5. TENANCY / RENT ROLL SUMMARY
- Occupancy (physical and economic)
- Top tenants by rent, lease expirations by year (commercial)
- Unit mix, in-place vs. market rents, concessions (multifamily)
6. FINANCIAL SUMMARY
- T-12 vs. underwritten NOI with each adjustment explained
- Expense ratio and reserves
- Pro forma (clearly labeled as projected)
- Loan sizing: DSCR, LTV, debt yield, and which is binding
7. SPONSORSHIP
- Principals and roles
- Track record with similar assets
- Net worth and liquidity
- Real estate owned summary
8. BUSINESS PLAN AND EXIT
- Plan for the hold period
- Budget and timeline (value-add or construction)
- Exit: sale, refinance, or hold; supporting assumptions
9. RISKS AND MITIGANTS
- Risk 1: [ ] Mitigant: [ ]
- Risk 2: [ ] Mitigant: [ ]
- Risk 3: [ ] Mitigant: [ ]
10. EXHIBITS
- Rent roll, T-12, pro forma, sources and uses
- Photos, maps, site plan
- Sponsor bio, REO schedule, PFS (on request)
What to write in each section
1. Request summary
This is the memo. Many lenders will read nothing else before deciding. Use exact numbers, not ranges, and make sure each one matches the deck and email. State the rate assumption behind your DSCR so the lender can re-run it.
2. Transaction overview
Explain the deal in three to five sentences. Include a sources and uses table:
| Sources | Amount | Uses | Amount |
|---|---|---|---|
| Senior loan | $9,100,000 | Purchase price | $14,000,000 |
| Sponsor equity | $5,600,000 | Closing costs | $350,000 |
| Capex reserve | $350,000 | ||
| Total | $14,700,000 | Total | $14,700,000 |
Totals must match. A sources and uses table that does not balance is an instant credibility loss.
3. Property description
Facts only: size, age, construction, unit or tenant mix, condition, improvements. Mention third-party reports you have, and anything they flagged.
4. Location and market
Two or three paragraphs and a comp table. Show that in-place and projected rents sit within the comp set. If your pro forma rents are above the comps, explain why (renovation scope, amenities, location within the submarket).
5. Tenancy
For multifamily, show unit mix, average in-place rent versus market, occupancy and concessions. For commercial assets, show the top tenants, their share of rent, credit, and a lease expiration schedule. Rollover in the loan term is one of the first things an office or retail lender checks. See how to read a rent roll and T-12.
6. Financial summary
Show the T-12 beside your underwritten numbers and explain every adjustment: vacancy, management fee, reserves, tax reassessment, insurance. Present the pro forma separately and label it. Then show the sizing math and state which constraint binds. Our sizing guide shows how.
7. Sponsorship
A short bio for each principal, a track record table (property, type, size, dates, outcome), and headline net worth and liquidity. Keep the personal financial statement as an exhibit available on request.
8. Business plan and exit
For bridge and construction loans, this section carries the deal. Include the budget, timeline, leasing assumptions and the exit, often a refinance into a permanent loan. Show that the stabilized NOI supports the takeout loan.
9. Risks and mitigants
Three to six real risks. Generic risks ("interest rates may rise") add nothing. Specific risks build trust:
| Risk | Mitigant |
|---|---|
| 22% of rent from one tenant, lease expires in year 3 | Tenant has occupied since 2011, recently expanded; leasing reserve funded at closing |
| Renovation budget overrun | 10% contingency; GC has completed four similar projects for the sponsor |
| Floating rate exposure | Rate cap purchased for the initial term |
10. Exhibits
Attach the documents a lender needs to verify your numbers. Name files clearly: "Rent Roll, Oct 2026.pdf", not "scan_0043.pdf".
Filled-in example summary
$9.1M acquisition loan, 120-unit multifamily, Columbus, OH. Purchase price $14.0M; requested LTV 65%. Underwritten NOI $860,000 (T-12 $905,000, adjusted for 5% vacancy, 3% management fee and $300/unit reserves). DSCR 1.28x at 6.25% on a 30-year amortization (1.51x during 2 requested years of interest-only). Debt yield 9.5%. Sponsor owns 1,400 units across Ohio and Indiana, net worth $28M, liquidity $3.5M. Plan: interior upgrades on 40 units over 24 months, $350,000 funded at closing. Non-recourse requested, standard carve-outs. Target close: December 15.
Everything a lender needs to say "send the package" or "pass" is in one paragraph.
Adapting the memo by loan type
The template covers most requests. Shift the emphasis to match what the loan depends on:
- Stabilized permanent loan: sections 5 and 6 carry the memo. Tenancy quality and in-place cash flow decide the quote.
- Bridge loan: section 8 carries the memo. Show the budget, the timeline, the leasing assumptions and the takeout. Include current and stabilized NOI side by side.
- Construction loan: expand section 8 into budget, schedule, contractor, entitlements and pre-leasing. Size on LTC and show the stabilized refinance test.
- Mezzanine or preferred equity: add the senior loan terms and the full capital stack, with combined leverage and the sponsor's remaining equity.
- SBA 504: add the operating business's financials and the owner-occupancy details.
Writing style that works with credit officers
- Numbers before adjectives. "94% occupied, 1.31x DSCR" beats "strong, well-located asset".
- One claim, one source. If you state a market rent, cite the comp.
- Short paragraphs. Three to four sentences each.
- No marketing language. The memo is not an offering memorandum. Lenders discount promotional tone.
- Consistent rounding. Pick a convention (for example, thousands) and use it everywhere.
Checklist before you send
- Request summary numbers match the deck and email exactly
- Sources and uses balance
- Rent roll is dated within 30 days
- T-12 adjustments are each explained
- Pro forma is labeled as projected
- Binding sizing constraint is identified
- Risks are specific, each with a mitigant
- Exhibits are named clearly
How Dori builds the memo
Dori generates the memo as a DOCX alongside a branded PPTX deck, both from one extracted deal record, so the numbers always agree. Rent rolls and T-12s land in your own underwriting template, and every number keeps a link back to the page it came from. See loan packages.