Commercial Real Estate Fundability Assessment

1. Why Fundability Matters In CRE

Debt and equity providers back numbers they can verify: rent rolls that tie to leases, net operating income that ties to bank deposits, draw schedules that match work in place. Miss on any of that and your close drifts, pricing widens, or the lender just says no. Fundability is the credibility gap between your marketing deck and the support in your data room. Close the gap and you control the conversation. Leave it open and you invite retrades.

2. Where CRE Deals Break Before Capital Day

• Rent Roll Mismatch- Reported occupancy does not line up with executed leases or estoppels.
• NOI Inflation- Pro forma strips out recurring repairs or capitalizes operating spend to bump value.
• T-12 vs GL Breaks- Trailing 12-month statement fails to tie to general ledger or bank activity.
• Capex Guesswork- No backed-out plan for deferred maintenance, TI, or leasing commissions.
• Zoning / Use Exposure- As‑is use not fully conforming; lender counsel flags it late.
• Environmental Questions- Phase I calls for a Phase II and no one budgeted the drill rigs.
• Title Gaps- Easements, encroachments, or missing ALTA survey updates stall closing.

3. What We Test In A CRE Fundability Review

• Rent Roll Scrub(tie to leases, expiries, options, CPI bumps, co‑tenancy risk).
• NOI Normalization(add backs, reserves, one‑offs, triple‑net pass‑through accuracy).
• Argus / Model Review(link check, reversion cap sanity, exit yield vs market data).
• T-12 & Historical Operating Tie-Out(GL, bank, tax filings cross‑check).
• Lease Abstract Sample(top 10 or revenue‑weighted tenant set; recoveries mapped).
• Capex & TI/LC Forecast(scope, timing, funding sources, contingency adequacy).
• Debt Metrics Stress(DSCR, DY, LTV, LTC under rate shocks and occupancy haircuts).
• Legal & Title Pack Scan(survey, title exceptions, SNDA status, estoppels outstanding).
• Environmental & Property Condition Flagging(Phase I/II, PCR, roof/HVAC remaining life).
• Data Room Structure(folder map that mirrors lender/investor checklists; version control).

4. Scoring Framework For CRE Capital Providers

Six scored pillars, each 0 to 5, weighted by asset type (office, industrial, multifamily, retail, hospitality, mixed‑use, development). Scores roll to a 100‑point Fundability Score that signals how much pushback to expect from credit committees and equity ICs.

• Income Quality & Durability
• Data Integrity & Financial Tie-Out
• Physical / Environmental Risk
• Legal / Title Readiness
• Model Credibility & Valuation Support
• Capital Structure Feasibility

5. Deliverables You Can Take To Lenders & Investors

• PDF Scorecard showing pillar scores, heat map, and total Fundability Score.
• NOI Bridge Workbook from reported to normalized to lender underwrite case.
• Rent Roll Variance File flagging delinquencies, expiries inside loan term, rollover cliffs.
• Lease Abstract Pack revenue‑weighted sample with key economic terms and recoveries.
• Capex / TI Tracker with sources & uses and draw sequencing vs construction schedule.
• Debt Sizing Scenarios(rate grids, DSCR, proceeds vs LTV/LTC limits).
• Data Room Folder Schema plus required doc checklist (title, survey, enviro, reports, insurance).
• 60 Minute Readout Call with Q&A and capital strategy pointers.

6. Pricing Tiers (Flat Fees; Scope Assumptions Below)

Tier	Fee (USD)	Best For	Includes	Typical Turnaround
Tier 1: CRE Quick Scan	5 000	Single asset, early read before soft lender or JV chats	Up to 20 core property docs High‑level rent roll and NOI checks Title & enviro red flag glance Top 10 fix list	5 business days once data lands
Tier 2: Underwriting Prep	12 500	Borrowers lining up term sheets or recap proposals	Everything in Tier 1 Full NOI normalization & T‑12 tie‑out Lease abstract sample (revenue‑weighted) Debt sizing grid (DSCR, LTV, rate shock) Data room build guide	10 business days
Tier 3: Full Deal Readiness	20 000	Transactions headed to senior debt + mezz + equity syndicates	Everything in Tier 2 Argus/model deep review & valuation checks Capex & TI/LC forecast w draw sequencing Legal & title matrix (exceptions, cure plan) Capital stack feasibility memo (proceeds range, gaps)	15 business days (complex or multi‑parcel may extend)

Scope Assumptions

• Income‑producing property or late‑stage development with signed GMP or detailed budget.
• Historical operating data available for at least 24 months (or construction budget + prelease evidence).
• Single reporting currency. Cross‑border or multi‑currency priced on review.
• Data room under 5 GB. Larger filesets may extend timing.
• Fees cover one revision round after readout. Extra cycles billed hourly.

7. Engagement Flow

• Inquiry Call(no charge, 20 minutes) to size asset, market, and tier fit.
• Mandate + Retainer signed; invoice issued; work starts when funds clear.
• Secure Data Intake for rent roll, T‑12, leases, surveys, enviro, reports.
• Analytical Work by our CRE capital team; outside specialists looped in for environmental, structural, or tax items as needed.
• Draft Score & Variance Flags posted to portal; management comment window opens.
• Final Pack & Readout Call delivered; next steps mapped toward lenders and equity sources.

8. When To Order A CRE Fundability Assessment

• 60 to 120 days before launching a refinance or sale process.
• Pre‑development capital stack build where land, permits, and GMP need to line up for lenders.
• Distressed or maturing debt situations where time is tight and underwriting clarity decides who shows up.
• Portfolio aggregation before hitting the market with a programmatic JV partner.

9. Quick FAQ

Do you produce an appraisal?

No. We review valuation drivers and model math. Third‑party licensed appraisers control formal value opinions.

Will this replace lender underwriting?

No. Lenders still underwrite. Our review helps you hand them clean numbers so they move faster and argue less.

Multi‑asset portfolio?

Yes. Tier 3 is a base. Complex or multi‑market pools are custom quoted after the inquiry call.

Confidential data?

All uploads go through secure channels under mandate terms and NDAs where required.

Financely Group provides advisory and capital arrangement services. We are not a deposit‑taking bank and do not lend on our own balance sheet. Fundability Assessments are diagnostic reviews, not appraisals, audits, legal opinions, engineering reports, or investment recommendations. Output depends on the accuracy and completeness of materials supplied by the client. Engagements require executed terms, advisory retainer, KYC, sanctions screening, and access to underlying financial and property data. Fees shown assume the scope described; multi‑asset, multi‑currency, or forensic requests will require amended pricing. Deliverables are confidential to the client; sharing with third parties is at the client's risk. Misrepresentation or withheld information can trigger termination and reporting under AML and CTF rules.