Φ RCP · Lux et Ordo
Φ Φ Φ
Capital Stack · Underwriting Package

Items Needed for This Transaction

146-lot horizontal development. Sponsor track record, PFS, and SREO already in hand — the remaining checklist to bring this to institutional and family office review.

0% —
I

Project Financials & Comprehensive Budget

The construction quote likely excludes soft costs and unforeseen variables — lenders need the full financial picture.

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Master Sources & Uses
Complete project budget incorporating the Colbert estimate, all soft costs (engineering, staking, etc.), interest reserves, and a standard 10–15% contingency.
Outstanding
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Draw Schedule
Month-by-month cash flow projection detailing how capital will be deployed over the development timeline.
Outstanding
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"As-Is" Appraisal
Validates the $5.1M current land value.
Outstanding
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"As-Completed" Appraisal
Verifies final lot values once horizontal work is complete.
Outstanding
II

Exit Strategy & Revenue Validation

The LOI is the linchpin of the deal — lenders will want to stress-test the exit.

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Executed LOIs or PSAs
Copies of the actual agreements with homebuilders for the 146 lots — needed to evaluate builder creditworthiness and the specific takedown schedule.
Outstanding
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Market Feasibility Study
If PSAs are not yet hard — demonstrates absorption rates and comparable lot sales to justify the $125K/lot valuation.
Outstanding
III

Entitlements, Engineering & Environmental

Proves the dirt is truly shovel-ready and mitigates horizontal risk.

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Zoning & Entitlement Approvals
Fully approved/stamped civil site plans, final plat approvals, and Land Disturbance Permits (LDPs).
Outstanding
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Phase I Environmental Site Assessment (ESA)
Standard requirement to clear any environmental liabilities.
Outstanding
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Geotechnical / Soils Report
Critical for horizontal work — verifies soil stability and avoids costly surprises like un-surveyed rock or unsuitable soils.
Outstanding
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Utility Will-Serve Letters
Official confirmation from local municipalities verifying water and sewer capacity for all 146 lots.
Outstanding
IV

Insurance & Builder's Risk

Standard pre-close requirement on any ground-up horizontal facility.

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Builder's Risk / Course-of-Construction Policy
Covers the project against loss during the horizontal development period.
Outstanding
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General Liability Certificate
Certificate of insurance naming the lender as additional insured/loss payee, per standard closing requirements.
Outstanding
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Additional Items Worth Considering

Not always required, but each of these has come up at the underwriting table and can either accelerate approval or get flagged as a gap later if missing.

Sensitivity Analysis

Downside Lot Pricing Scenario

A stressed pro forma showing the deal's coverage if lot pricing comes in 10–15% below the $125K/lot basis. Lenders increasingly ask for this proactively rather than reactively — having it ready signals discipline.

Construction Contract

GC/Earthwork Contractor Agreement

If Colbert's estimate is informal, a signed contract or letter of intent with the actual earthwork/horizontal contractor strengthens the budget number considerably — an estimate alone reads as soft.

Timeline Risk

Critical Path Schedule

A simple Gantt-style timeline showing permitting, horizontal construction, and lot delivery milestones against the loan term — makes it easy for a credit committee to see there's no timeline mismatch with the facility's maturity.

Flood & Wetlands

FEMA Flood Determination / Wetlands Survey

If any portion of the 146 lots sits near a flood zone or wetlands boundary, having this cleared up front avoids a late-stage surprise that can stall closing by weeks.

HOA / CDD

HOA or CDD Formation Documents

If the development includes a homeowners association or community development district, lenders will want to see the formation documents and understand who carries ongoing maintenance obligations post-takedown.

Tax

Current Property Tax Statement

Confirms there are no outstanding tax liens or delinquencies on the parcel — a quick, often-overlooked item that title will flag anyway, so worth having ready.

Φ Lux et Ordo