Walk in with a current appraisal , trailing-twelve operating statements, a credible business plan with stabilization timeline, evidence of fresh-equity capacity, and counsel familiar with the loan documents. Lenders fund workouts they can defend internally, give them the documentation they need to do so.
What should the business plan show?
A specific path from current state to a refinance or sale that pays the lender out. Include leasing assumptions, capital expenditure schedule, projected NOI ramp, and the sources and uses of the fresh equity. Provide the comparables that support your assumptions. Vagueness costs you the workout.
What should you avoid?
Asking the lender to write down basis without offering anything in return. Fresh equity, extended personal guarantees, or improved cash management terms are typically required. Sponsors who go to the lender empty-handed get foreclosed; sponsors who arrive with a credible deal get modifications.
Sources
- Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations · Mortgage Bankers Association · 2026-Q1