Preliminary Review

LOAN PACKAGE: Please use only 8.5" x 11" paper and a large enough right margin so we have room for a three hole punch. All of our loan presentations to our correspondent lenders and/or investors are made in three hole notebooks complete with tabs for each section.

PURPOSE OF THE LOAN: We would like for you to use a separate page to describe the loan amount you are seeking with this application as well as the purpose of this loan. Please describe any and all existing debt you plan to pay off with this loan as well as any debt that will remain after this loan is funded. Also, please describe exactly what you are going to do with the proceeds of this loan.

DETAILED DESCRIPTION OF THE PROJECT: Please use a separate page to give us a complete description of the project (office building, retail center, warehouse, etc.) including date built, type of construction, type of roof (date of existing roof), interior finishout, description and dates of any major capital improvements, size of land, location, parking and other general information.

PHOTOGRAPHS: We need 6 to 12 good quality 35mm 4"x 6" color photographs of the exterior and interior of the project, including a few street scenes. Please do not mount the photographs.

RENT ROLL: On a separate page we need a fairly complete description of each tenant, including a fairly detailed description of the tenant's business, date of the original lease, monthly lease payment, expiration date of the existing lease, who pays the utilities, etc. Also, please advise us about tenant reimbursements for janitorial, maintenance, tenant improvements, etc.

SITE PLAN: We would like to receive a site plan (copy of a survey is fine) and a floor plan so we can get a general idea of the layout of the project. The floor plan can just be a sketch. If these are on large paper, please have them reduced to legal size. On the floor plan it would help to write in the name of each tenant.

INCOME & EXPENSE: We need the income and expense for the project for the past three calendar years as well as your proforma for the current year and the next two years. It is best to prepare this in a spreadsheet format using one column for each year (six years total). Then attach one page for each year reflecting the 12 months and a total column for that particular year. Be sure that you do not include any debt service or capital improvements in expense. For the expense we only want actual operating expenses. From income we subtract operating expenses and the result is called Net Operating Income "NOI". Under NOI please list all capital expenditures and any debt that we are not going to pay off with this new loan. Capital expenditures would include a new parking lot, a new roof and other non operating expenses. Tenant finishout is an operating expense, except for a new project and/or major renovations. Please list all major capital expenditures with the date, cost and description of each capital improvement.

CORPORATE BORROWER: We would like a separate page to describe the borrowing entity, which may be a corporation. Also please list the names of each person that owns 10% or more stock in this corporation. We will need a personal financial statement and resume on each principal. At this point we do not want to receive tax returns. A principal is any individual that owns 10% or more of the stock of the corporation. If the project is managed by a management company we will need some background information on the management company as well.

INDIVIDUAL BORROWER: We will need a resume and personal financial statement on each individual borrower, which could include several individuals in a partnership. At this point we do not want to receive tax returns.

PLEASE DO NOT FAX THE ABOVE INFORMATION TO HARDIN MORTGAGE. WE PREFER TO RECEIVE YOUR ORIGINALS VIA MAIL. ALSO, WE NEED TO RECEIVE ALL OF THE INFORMATION IN ORDER TO COMPLETE OUR REVIEW AND ANALYSIS. THANK YOU FOR YOUR ASSISTANCE AND COOPERATION.