Valuexpress II, Inc

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ValueXpress II, Inc.

MORTGAGE LOAN APPLICATION

Property Name: ______

SUPPLEMENTAL REQUIREMENTS

TABLE OF CONTENTS

A. Property Description & Contact 2

1. Property Information 2

2. Property Management Company 3

3. Environmental History 3

B. Supplemental Information Form 4

1. Applicant 4

2. Principals 6

3. Working Group Information 7

4. Current Financing 8

C. Bank References 9

D. Underwriting Information 10

1. Property Information 10

2. Applicant’s Information 11

3. Borrower Organizational Chart 12

E. Titlework 13

1. Titlework Process and Approved Title Companies 13

2. Title Insurance Requirements 13

F. Property Insurance Requirements 14

Supplemental Requirements – Property Name: ______
Loan # 07- / Page 10 of 14
Applicant’s Initials: ______
/ Loan Application – Creekside Center

ValueXpress II, Inc.

A. Property Description & Contact

1. Property Information

Property Name: ______

Property Street Address: ______

County (Taxing Authority): ______County

Property Type: ______

Year Built: / Year of Renovation:
Gross Building Area: / Net Rentable Area (SF):
Number of Buildings: / No. Floors per Building:
Land Area (acres): / Number of Units/Pads:
Number of Parking Spaces:

Amenities: ______

______

Prior Year Real Estate Taxes: ______Date of Next Reassessment: ______

Does any tenant which occupies 15% or more of the property have a termination option? Yes No

If "yes", please explain:

______

______

2. Property Management Company

(This person will be contacted for site inspection)
Company Name:
Address:
Phone Number:
Fax Number:
Contact Name:

3. Environmental History

1. Any concerns noted in reports done in last 36 months? Yes No

If “yes,” please explain: ______

2. Are there oil/gas tanks on property? Yes No

If “yes,” please describe: ______

3. Asbestos detected since acquisition/construction? Yes No

If “yes,” please explain: ______

4. Is Lead Paint present on Property? Yes No

If “yes”, please explain: ______

Supplemental Requirements – Property Name: ______
Loan # 07- / Page 10 of 14
Applicant’s Initials: ______
/ Loan Application – Creekside Center

ValueXpress II, Inc.

B. Supplemental Information Form

1. Applicant

Borrowing Entity Info / (Legal entity that will own the Property at Closing)
Borrower Name:
Address:
City, State, Zip:
Phone Number:
Fax Number:
Borrower Contact / (This person will be contacted for information requests, if other than Borrower)
Name:
Company:
Address:
City, State, Zip:
Phone Number:
Fax Number:

Borrowing Entity

Corporation

General Partnership

Limited Partnership

Limited Liability Company

Other (define): ______

1.  (a) State of Organization: ______

(b) Date Organized: ______

(c) Tax ID Number: ______

2. (a) Is the Borrower a “single asset entity”? Yes No

(b) Total assets $______Total liabilities $______

3. Does the applicant have fee simple title? Yes No

If "no", explain title (e.g., leasehold and terms): ______

______

4. Has the Applicant, or Guarantor ever:

(a) Declared voluntary or involuntary bankruptcy? Yes No

(b) Had a property foreclosed or given a deed in lieu? Yes No

(c) Had any outstanding judgments? Yes No

If “yes” to any of the above, please explain: ______

______

______

5. How much hard equity does the Borrowing Entity and/or Principal (s) have in this transaction?

______

______

2. Principals

·  Please complete this form for all Principals, including (if not otherwise identified as a Principal) ALL General Partners and LLC Managers, as well as all other Persons directly or indirectly owning 20% or more of the Borrowing Entity, including Limited Partners or Members.

·  Please provide a copy of each Principal’s driver’s license or state ID card.

Principal – This individual is involved in day-to-day asset management and/or key decision making
First Name: MI: Last Name: Percentage Interest:
Home Address:
(Residential address for individual)
City: County:
State: Zip:
Phone Number: Fax Number:
e-mail Address:
Social Security Number: Birthdate:
Years of Real Estate Experience:
Are you a US Citizen? Yes No
Will this Principal be signing the non-recourse carveouts? Yes No
Has this Principal ever declared Bankruptcy, had a property foreclosed, given a deed in lieu or has outstanding judgment(s)?
Yes No If "yes", please explain (attach an explanation if the space below is insufficient):

The person indicated above hereby authorizes ValueXpress II, Inc. (and its assigns – together “Lender”) to: (i) obtain from any credit reporting agency any financial and credit reports that Lender considers appropriate, including information relating to past and present mortgages; (ii) verify all property indebtedness with creditors; and (iii) for the purposes of verifying information that Lender deems appropriate, contact the management agent of the property, the resident manager, the independent accountants who may provide financial statements for the property, and all other persons or entities deemed necessary by Lender.

In addition, Lender is hereby authorized to verify past and present employment earnings records, bank accounts, stock holdings and any asset balances that it deems necessary to process the mortgage loan Application of Borrower and Principal.

BY: ______

SIGNATURE DATE

PLEASE ALSO PROVIDE THE FOLLOWING INFORMATION:

MARITAL STATUS: SINGLE  MARRIED DEPENDENTS #: ______

POSITION HELD: ______

YEARS OF SERVICE: ______

ANNUAL INCOME: ______

STATE OF INCORPORATION/

ORGANIZATION (IF APPLICABLE): ______

TYPE OF ENTITY (IF APPLICABLE): ______

Supplemental Requirements – Property Name: ______
Loan # 07- / Page 10 of 14
Applicant’s Initials: ______
/ Loan Application – Creekside Center

3. Working Group Information

Broker Contact
Name:
Company:
Address:
City, State, Zip:
Phone Number:
e-mail Address:
Fax Number:
Applicant’s Counsel
Name:
Company:
Address:
City, State, Zip:
Phone Number:
e-mail Address:
Fax Number:
Surveyor (Existing Survey – if any)
Name:
Company:
Address:
City, State, Zip:
Phone Number:
e-mail Address:
Fax Number:

4. Current Financing

A. Purchase Price: $______Purchase Date:

B. Original Mortgage Balance: $______Date Financing Closed:

C. Current Mortgage Balance: $______Balance as-of date:

D. Interest Rate: ______Maturity Date:

E. Amortization Schedule: ______Monthly Payment: $

F. Lender Name:

Contact: Phone Number:

G. Prepayment Provisions:

H. Have there been any defaults? Yes No If “yes”, describe:

Supplemental Requirements – Property Name: ______
Loan # 07- / Page 10 of 14
Applicant’s Initials: ______
/ Loan Application – Creekside Center

ValueXpress II, Inc.

C. Bank References

Name:
Institution:
Phone Number: / Fax Number:

REAL ESTATE MORTGAGE LENDER REFERENCE:

Name:
Institution:
Account #(s):
Address:
Phone Number: / Fax Number:

REAL ESTATE MORTGAGE LENDER REFERENCE:

Name:
Institution:
Account #(s):
Address:
Phone Number: / Fax Number:

The undersigned hereby grants permission to investigate my payment / borrowing history.

______Date: ______

Complete this form for Applicant, Borrower, all Principals and the Property Manager

Supplemental Requirements – Property Name: ______
Loan # 07- / Page 10 of 14
Applicant’s Initials: ______
/ Loan Application – Creekside Center

ValueXpress II, Inc.

D. Underwriting Information

The following information and documentation must be provided to Lender by Applicant in order to complete the Application, and is subject to Lenders’s review and approval (which, if a Loan Approval Letter is issued, must be updated and continue to be satisfactory as of Closing):

1. Property Information

1. / ¨ / Certified financial statements for the Property for the last 3 calendar years that itemize income, expenses and capital expenditures. Please include an explanation of any extraordinary revenue or expense items.
2. / ¨ / Certified month-by-month income statements for the Property for the trailing twelve month period.
3. / ¨ / Current rent roll that shows each tenant's name, sales history for last twelve months, lease commencement and expiration dates, commencement date of rental payments, concessions, monthly base rent, escalation provisions, expense recovery provisions, space or unit number, security deposits, guarantor (if any), options to purchase, extend, renew and/or terminate, tenant improvement allowance, if applicable, and any other rent items, for the last three months.
4. / ¨ / Monthly occupancy and rental rate history for the prior 3 years (including month-by-month occupancy rate for the past 12 months).
5. / ¨ / Tenant delinquency reports for the trailing twelve months.
6. / ¨ / Copies of most current three months of deposit slips and bank statements. These will be used in the cash flow verification process.
7. / ¨ / A cash disbursements listing for the trailing twelve months. As part of the cash flow verification procedures, a small sample (approximately 10%) of expenditures will be tested for which additional documentation may be requested.
8. / ¨ / Insurance premium notice, and proof of payment. Evidence of casualty, liability, business interruption and other insurance requested by Lender (See Supplemental Requirement G).
9. / ¨ / Current real estate tax bill (front and back) and evidence of most recent payment.
10. / ¨ / A copy of management agreement for the Property.
11. / ¨ / An accounts payable listing for the current period.
12. / ¨ / List of Property employees, salaries and fringe benefits (e.g., free rent).
13. / ¨ / Copies of ground lease, if any, of the Property.
14. / ¨ / A summary of recently signed leases describing rents due and any concessions granted to tenants (including costs of tenant improvements and leasing commissions).
15. / ¨ / Copies of all leases.
16. / ¨ / If the Property has had construction (including significant renovation) in the last 18 months, a detailed breakdown of the hard and soft cost for the construction project.
17. / ¨ / Please provide the current year Common Area Maintenance Reconciliation.
18. / ¨ / If a retail property, please provide gross sales figures for the past three years for each major tenant.
19. / ¨ / Current Financial Statements for all major tenants.
20. / ¨ / Summary of capital expenditure programs for the last 3 full years (with amounts spent).
21. / ¨ / Summary / description of any other income from the Property.
22. / ¨ / Current year and, if completed, subsequent year operating and capital budgets for the Property.
23. / ¨ / Floor plan and site plan.
24. / ¨ / Representative color photographs of the interior and exterior of the Property.
25. / ¨ / Aerial photograph (if available).
26. / ¨ / Copy of existing title policy or commitment (do not order - please see Section E, below)

2. Applicant’s Information

27. / ¨ / Borrowing Entity’s and Principals’ tax returns for the previous 3 years.
28. / ¨ / Personal Financial Statements on Principals of Applicant/Borrower (form available upon request).
29. / ¨ / Complete owner profile(s) including background, experience, and property and/or corporate brochure.
30. / ¨ / Complete property manager profile(s) including background, experience, and property and/or corporate brochure.
31. / ¨ / List of all properties owned by Principals and the Applicant/Borrower including: (i) property name, location, type, total sf/units; (ii) percentage of ownership interests; (iii) property value, name of lender and amount of debt, maturity date and terms; (iv) contingent liabilities and/or guarantees; (v) prior and current year NOI and occupancy; and (vi) projected current year debt service (form available).
32. / ¨ / Executed purchase agreement with attachments if loan is used to purchase the Property.
33. / ¨ / Copies of all third party contracts/agreements.
34. / ¨ / If the Applicant is a land trust, we will require a certified copy of:
(a) Deed conveying the property into the trust;
(b) Trust Agreement evidencing the authority of the trust, identifying the Beneficiary and entity holding the Power of Direction; and
(c) Letter of Direction authorizing the execution of our loan documents.
35. / ¨ / Organizational Chart: Borrower organizational structure information – Please complete the attached Organizational Chart and provide a breakdown of 100% of the ownership interests in the borrowing entity.
36. / ¨ / Organizational Documents: Please provide documents (Articles, Partnership Agreement, Operating Agreement, Bylaws, Regulations, Trust Agreement, etc.) for Borrower and any General Partner, Manager, Managing Member and any entity or trust that will hold 20% or more of the equity, directly or indirectly
Supplemental Requirements – Property Name: ______
Loan # 07- / Page 10 of 14
Applicant’s Initials: ______
/ Loan Application – Creekside Center

3. Borrower Organizational Chart

PLEASE COMPLETE ALL INFORMATION

Supplemental Requirements – Property Name: ______
Loan # 07- / Page 10 of 14
Applicant’s Initials: ______
/ Loan Application – Creekside Center

ValueXpress II, Inc.

E. Titlework

1. Titlework Process and Approved Title Companies

To provide a more efficient satisfaction of Lender’s title requirements in connection with Closing, Lender will only accept a Lender’s Policy of Title Insurance (“Title Policy”) ordered through designated national title offices of the Title Companies identified below.

(1)  Lender will solicit written bids from the Title Companies, and give Borrower the choice between them. Borrower must then place the order for the required Title Commitment (or similar undertaking satisfactory to Lender and its counsel).

(2)  NOTE: If you prefer not to have Lender obtain competitive bids, and instead wish to use only one of the approved Title Companies, please so indicate in the checkbox. Otherwise, your choice of Title Companies will be indicated on the returned bid sheets obtained by Lender.

Chicago Title Insurance Company (Fidelity, Ticor, Security Union & Alamo)
Fanny Trataros
National Counsel, VP
711 Third Avenue
New York, N.Y. 10017
Telephone: (212) 880-1318
Fax: (212) 880-9615
Email: / First American Title Insurance Company
Ms. Tammy Christen
National Commercial
Services Division
2723 South State Street
Suite 140
Ann Arbor, MI 48104
Telephone: (734) 663-8223
Fax: (734) 663-0735
Email: / LandAmerica Financial Group, Inc. (includes Commonwealth Land Title, Lawyers Title, Transnation Title)
Ed Cruz
Assistant Vice President
LandAmerica Financial Group,Inc
Two Grand Central tower,140 East 45th Street
New York,New York 10017
direct dial: 212-973-6207 fax:212-986-3215
e-mail:

(3)  If you have an existing Title Policy, please provide a copy of that complete document to Lender with the Application. This will usually save additional premium expense, and certainly time.