Before the term sheet: five questions every capital request should answer

Most financing conversations stall for the same reason: the request arrives incomplete, and the first few exchanges are spent reconstructing basic facts. A clear request will not change what a lender is willing to do, but it does make it much faster to learn whether a realistic path exists.

1. What is the property?

Type, location, condition and current use. For income property, what it earns today and what it is expected to earn after any work is complete.

2. Who is the borrower?

The borrowing entity, the people behind it, and their experience with comparable projects. For many business-purpose programs, relevant experience shapes what is available.

3. What is the money for?

Purchase, refinance, cash-out, renovation, construction or stabilization. Each purpose points toward different programs and different documentation.

4. When is it needed?

A contract deadline, a maturing loan, a construction start. Timing often decides which options are practical at all.

5. How is it repaid?

The exit: sale after renovation, refinance once the property is stabilized, or long-term hold. Short-term capital in particular is sized and priced around a credible exit.

A clear request does not change the answer. It changes how quickly you get one.

A note on DSCR

DSCR stands for debt service coverage ratio: broadly, the property's income compared with its debt payments. DSCR programs for eligible investment properties focus on that relationship rather than solely on the borrower's personal income. Definitions, minimum ratios and eligibility vary by lender and program.