FINANCING REQUEST TEMPLATE

Summary

Grand Coast Capital Group requires that a Financing Request Package accompany all loan requests. The suggested outline included in this packet is very comprehensive and may request information that is not relevant to a particular loan request. This template has been utilized by the principals of Grand Coast to effectively raise $400M+ in debt and equity for various real estate investments over the years. This template focuses primarily on residential rehab, construction, and development loans and provides a consistent process for borrowers to streamline the financing process and accelerate the funding timeline to meet the closing deadlines. Timely submission of a completed Financing Request Package can mean funding in as little as 5–7 business days.

Please be advised, Grand Coast Capital Group receives a high volume of loan requests. We aim to review and respond to loan requests within 48 hours of receiving the Financing Request Package. Grand Coast requires certain criteria for a loan request to be considered. If the following criteria are not met, your loan request will not be reviewed:

Borrower must have real estate experience with a proven track record Borrower is required to have a minimum of 20% equity into the deal The loan-to-value (LTV) may not exceed 70%

About Grand Coast Capital GroupGrand Coast Capital Group seeks to establish long-term relationships with experienced real estate investors, owner operators, developers, and brokers that are built upon trust, client service, and executional efficiency. Please submit your Financing Request Package or any specific questions related to your particular transaction to contact@grandcoastcapital.com.

Randy WintersVice President, Asset ValuationPh: (857)206-6464

Joe ZaniboniUnderwriting Specialist, Asset ValuationPh: (857) 206-6464 ext 104

FRT-V2-01182016

350 Lincoln Street, Suite 2503Hingham, MA 02043

www.grandcoastcapital.com

FINANCING REQUEST TEMPLATEI. COVER PAGE

The Financing Request Package should include a Cover Page with the following information: Picture of the Property Full Property Address Timing for Funding (Closing Date, etc.) Borrower(s) Complete Contact Information, which should include:

o Name of Company (or entity that will own the investment)o Name of Owners & Principals involved in the transactiono Business Addresso Phone Numbers of Related Partieso Email Addresso Website Information

II. EXECUTIVE SUMMARYThe Executive Summary is a brief narrative of the financing request, which summarizes the transaction, including the property and loan specifics. The Executive Summary should be clear and concise, and gives the borrower the ability to sell the deal to the lender.

The Executive Summary should include the following information for the lender’s review: Brief description/background on the deal

o How did you source the opportunity?o What is the purchase price and timing of the transaction?o Why are you utilizing private money?

Purpose of the Loan Requesto Purchase, Refinance, Bridge, Construction, Development, etc.

Exit Strategyo What is your exit strategy and timing? How do you plan on repaying the loan?o Sale, Refinanceo Briefly justify your exit strategy

Loan Proposal Request (Summarize loan terms you are requesting)o Closing Date / Timeframeo Loan Amounto Amount of Borrower Equity o Term of Loan o Interest Rate o Any additional loan specifics

Sources & Uses of Funds (see Appendices section for examples)o Sources – where capital is coming from on the dealo Uses – how the capital is being utilized in the dealo Sources of Funds must equal Uses of Funds

Brief summary of Borrower and/or Companyo Quick write-up for lender to identify borrower and/or company

350 Lincoln Street, Suite 2503Hingham, MA 02043

www.grandcoastcapital.com

FINANCING REQUEST TEMPLATE

III. PROPERTY DESCRIPTIONThe Property Description section should provide a complete physical description of the land, improvements, and the property, as well as any additional visual aids, such as photos, site plans, etc. For development and construction financing, the borrower should include a detailed scope of work, broken out line by line, regarding the proposed improvements to the property and associates costs with those improvements.

Property Information Property Name and/or Physical Address Property Type (single-family, 1-4 unit, apartment, retail, mixed-used, office, etc.) Number of Units & Net Rentable Square Feet

o Breakdown of units and sizes Year Built/Renovated/Remodeled

Site/Land Details Purchase Price Total acreage or SF Zoning Ingress and egress Utilities Easements or deed restrictions Roads / shared driveways Excess land

Construction Details Configuration, design features/utility Type of roof, foundation, mechanical/electrical systems, heating/hvac systems Public Utilities Parking Deferred Maintenance

Proposed Scope of Construction / Improvements Detailed line-item list of all proposed improvements and associated costs Construction Schedule A construction budget/draw schedule spreadsheet template is available

IV. LOCATION & MARKET ANALYSISThis section should educate the lender on the property’s particular location/neighborhood, as well as the general market information and economic drivers for the particular area/city. In addition, this section should include comparables (active and sold) that justify and strengthen the exit strategy proposed.

350 Lincoln Street, Suite 2503Hingham, MA 02043

www.grandcoastcapital.com

FINANCING REQUEST TEMPLATE

The Location & Market Analysis section should generally include the following: Brief write-up on the property’s location as well as the local market information

o Justify why good area/market for your investment Demographic Information (pull from US Census or local city authorities) Additional Facts & Figures

o Pricing trends, valuations, Zillow, Trulia, etc. Map showing subject property and location of relevant comparables

Borrower should also provide a one-page summary of the comparables, preferably in excel, justifying the market value. The specifics of the comps will vary based upon the type of property, but the analysis should provide the lender with simple layout justifying the exit strategy and valuation.

Summary of comparables should include the following: Criteria used for comparable analysis 4 Active/UAG Comps 4 Sold Comps 4 Rental Comps

The lender will want to be able to easily compare the following information from this summary: Purchase Price Analysis

o PSF, Per Unit, Per Acre, Cap Rate, etc. Verify true comparable to the subject property

o Size, type, # bedrooms, # baths, land size, # units Market Timing

o How long on the market? Sale Price to List Price?

V. FINANCIAL ANALYSISThe lender is looking to review the assumptions made by the borrower when conducting their analysis, as well as any additional financial documentation that can be provided to prove out the analysis.

The Financial Analysis should include the following information for the lender to review: Detailed Financial Analysis Pro-Forma

o Detail assumptions made about analysis Loan Terms, Cost Breakdown, Residual Valuation

o Include particular model or excel spreadsheet utilized Flip Model Monthly Cash Flow Analysis Development/Construction Model

o Net Profit Analysiso Rental Pro-Forma (for refinance exit)

Shows sufficient debt coverageo IRR Analysis

350 Lincoln Street, Suite 2503Hingham, MA 02043

www.grandcoastcapital.com

FINANCING REQUEST TEMPLATE

VI. ABOUT BORROWERThis section should is a brief description of the company and the associated borrower(s), manager(s), or principal(s). The borrowing entity that is purchasing the property should also be included in the section. The lender is looking for company history and track record, as well the backgrounds of the individuals in the transaction. The general format should be as follows:

Description of the Company Track Record

List of current/historical real estate transactions Resume of owners, principals, etc.

Can be included in the Appendices, if applicable

VII. APPENDICESThe borrower should provide all relevant additional documentation related to the particular transaction. The lender will typically request this additional information after initial review, but always good to already have the information ready for the lender to review in order to expedite the underwriting process. The typical items that the borrower should make available to the lender for review (if applicable) are as follows:

Property Information Listing Sheet Purchase & Sale Agreement Copy of Deed Appraisal (if applicable) Pictures of the property (interior & exterior) Tax Assessor Card Photos of the property and site (interior and exterior) Site plan, survey, or recorded plat Floor plans Aerial photographs Construction Budget & Timeline

o Plot plans, permits, approvals, conceptuals, floorplans, sketches, zoning, elevations

o 3rd Party Reports PCR, Environmental, Zoning

Sources and Uses of Funds (example below)

350 Lincoln Street, Suite 2503Hingham, MA 02043

www.grandcoastcapital.com

FINANCING REQUEST TEMPLATE

PURCHASE (EXAMPLE)Sources of Funds Amount %1st Lien Mortgage $800,000 80.0%2nd Lien Mortgage (Seller/Private) $0 0.0%Equity (Borrower's Cash) $200,000 20.0%

TOTAL SOURCES $1,000,000 100.0% Uses of Funds Amount %Purchase Price $650,000 65.0%Closing Costs $30,000 3.0%Hard Costs $200,000 20.0%Financing $100,000 10.0%Soft Costs (Carry Costs) $20,000 2.0%

TOTAL USES $1,000,000 100.0%

REFINANCE (EXAMPLE)Sources of Funds Amount %1st Lien Mortgage $1,000,000 100.0%

TOTAL SOURCES $1,000,000 100.0% Uses of Funds Amount %Payoff Existing Loan $600,000 60.0%Renovations / Rehab Costs $250,000 25.0%Buy Out Partner $100,000 10.0%Mortgage Broker Fee $10,000 1.0%Lender Fee $10,000 1.0%Appraisal, Phase I, Structural $10,000 1.0%Refinancing Costs $5,000 0.5%Legal Fees $5,000 0.5%Title, Survey, & Escrows $10,000 1.0%Earn-out $0 0.0%

TOTAL USES $1,000,000 100.0%

The borrower should also have the following personal financial information available if requested by the lender for further review:

Personal Financial Statements 2 years of Tax Returns List of Real-Estate Owned Properties (REO Schedule) Bank Statements Credit Report

350 Lincoln Street, Suite 2503Hingham, MA 02043

www.grandcoastcapital.com