🏢 What Is a Property Schedule in Commercial Financing?
When applying for a commercial real estate loan, investment property loan, refinance, or asset-backed financing, a lender may ask for a Property Schedule.
A Property Schedule is simply a detailed list of the real estate properties that a borrower owns.
It may also be called:
- 📄 Schedule of Real Estate Owned
- 📊 SREO
- 🏘️ Real Estate Schedule
- 🗂️ Property Portfolio Schedule
The purpose is to help a lender understand the borrower’s real estate holdings, existing debt, rental income, available equity, and overall financial position.
🔍 Why Lenders Request a Property Schedule
A lender may use the Property Schedule to evaluate:
- 🏠 How many properties the borrower owns
- 💰 Current estimated property values
- 🏦 Existing mortgage balances
- 📈 Available property equity
- 💵 Rental income
- 🧾 Monthly debt obligations
- 👥 Occupancy
- 🤝 Ownership percentage
- 🏢 Property type
- 🧠 Borrower’s real estate experience
- 🔐 Potential collateral available for financing
For borrowers who own multiple properties, the Property Schedule gives the lender a quick overview of the entire portfolio.
📋 What Information Is Usually Included?
| Information | What It Means |
|---|---|
| 📍 Property Address | Location of the property |
| 🏢 Property Type | Residential, multifamily, commercial, mixed-use, etc. |
| 🤝 Ownership Percentage | Percentage of the property owned |
| 💲 Current Estimated Value | Approximate current market value |
| 🧾 Purchase Price | Original purchase price |
| 📅 Date Acquired | When the property was purchased |
| 🏦 Existing Mortgage Balance | Current outstanding loan balance |
| 💳 Monthly Mortgage Payment | Current monthly debt payment |
| 💵 Monthly Rental Income | Rent generated by the property |
| 👥 Occupancy | Whether the property is occupied or vacant |
| 🏛️ Property Taxes | Annual property taxes |
| 🛡️ Insurance | Annual property insurance |
| 📑 Title Owner | Individual or business entity that owns the property |
🧮 Simple Example
Suppose a borrower owns three properties:
| Property | Estimated Value | Mortgage Balance | Monthly Rent | Ownership |
|---|---|---|---|---|
| 🏠 Property A | $400,000 | $150,000 | $3,200 | 100% |
| 🏢 Property B | $300,000 | $0 | $2,500 | 100% |
| 🏘️ Property C | $500,000 | $250,000 | $4,000 | 50% |
This allows the lender to quickly see the borrower’s approximate real estate holdings, debt, rental income, and available equity.
💰 How Property Equity Is Calculated
A simple estimate of property equity is:
Property Value − Mortgage Balance = Property Equity
Example:
Estimated Property Value: $500,000
Mortgage Balance: $200,000
Estimated Equity: $300,000
This does not mean the borrower can automatically borrow the full $300,000. The lender will still consider LTV, property cash flow, DSCR, credit, liquidity, reserves, and other underwriting requirements.
🏦 How a Property Schedule Helps With Asset-Backed Financing
A borrower may want to use an existing property as collateral for a commercial mortgage, refinance, or cash-out transaction.
For example:
Appraised Property Value: $1,000,000
If a lender permits financing up to 75% LTV:
$1,000,000 × 75% = $750,000
If there is an existing mortgage of $250,000:
New Loan: $750,000
Existing Mortgage Payoff: $250,000
Potential Gross Remaining Proceeds: $500,000
Actual proceeds may be lower after lender fees, closing costs, taxes, reserves, escrows, liens, and other expenses.
📐 Estimated Value vs. Appraised Value
Estimated Value is the owner’s or market estimate of what the property may be worth.
Appraised Value is the value determined by a professional appraisal acceptable to the lender.
During an initial discussion, estimated value may be used. Before closing, a lender may require an independent appraisal.
📂 Documents That May Support a Property Schedule
A lender may request:
- 🏦 Current mortgage statements
- 📜 Property deeds
- 💵 Rent rolls
- 📝 Lease agreements
- 🏛️ Property tax bills
- 🛡️ Insurance declarations
- 💳 Bank statements
- 📊 Operating statements
- 📈 Property income and expense records
- 📐 Appraisals
- 🏢 Entity ownership documents
Not every lender requires every document at the beginning.
✅ Why Accuracy Matters
The Property Schedule should be as accurate as possible.
Borrowers should avoid overstating:
- Property values
- Rental income
- Occupancy
- Ownership percentages
- Available equity
Important information will typically be verified during underwriting.
A well-prepared Property Schedule can help a lender understand the borrower’s real estate portfolio more quickly and efficiently.
⚠️ Important Notice
A Property Schedule is only one part of commercial loan underwriting.
Owning valuable real estate does not guarantee financing.
Loan approval, maximum LTV, interest rate, loan amount, term, and available cash-out proceeds depend on the lender’s underwriting requirements, including property value, cash flow, DSCR, borrower credit, liquidity, reserves, title, property condition, loan purpose, and other factors.
White Feather Capital LLC is a commercial financing brokerage/referral company and is not a direct lender. Financing is subject to lender approval and applicable eligibility requirements.