Interest and rate exposure
Record the lender’s quoted spread, reference index and floor. For floating-rate debt, model more than one benchmark-rate scenario and include any required cap.
Fees and cash required
Include origination, legal, third-party reports, servicing, extension and exit fees where applicable. Required reserves can reduce usable proceeds even when they are not a fee.
The expected repayment date
Compare total cost at your intended exit and if the business plan takes longer. An extension may require additional fees, a cap purchase or a paydown.
Compare lender term sheets · Official interest-rate benchmarks
Compare the cost over the expected hold
List the quoted interest calculation, rate floor, origination fee, extension charges, exit fee and any minimum-interest provision. If interest floats, model more than one benchmark assumption. If the loan funds renovations over time, distinguish the interest charged on the initial advance from interest on later draws.
The expected repayment date matters. A loan that appears cheaper for a short hold may cost more if leasing takes longer and an extension is required. Include any rate-cap purchase, legal expenses and reserves when estimating the cash needed to close and carry the property.
Use the actual term sheets
Put each proposal into the same monthly cash-flow model, using the same renovation schedule and repayment date. Show cash paid at closing, interest during the term and the amount due at exit. Separate reserves from fees so the comparison does not treat every funded dollar as a permanent expense.
MCM helps compare these obligations against the business plan and negotiate the proposed terms. The pricing comes from lenders reviewing the transaction; a generic spread range cannot replace that review.