Joe DownsCEO & Co-Founder, Belrose Storage Group. Founder, Storage Moguls.

What credit committees actually look for

17 Apr 2026 · 1 min

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In this brief presentation, the speaker outlines the seven key items that a lender’s credit committee evaluates when underwriting a commercial real‑estate loan. The primary focus is on building a loan submission that meets the committee’s checklist: (1) Debt Service Coverage Ratio (DSCR) must be calculated on stabilized Net Operating Income (NOI) with a floor of 1.25, not on projected or enhanced NOI for value‑add deals; (2) Loan‑to‑Value (LTV) and collateral requirements demand an appraisal that fully supports the requested loan amount; (3) For niche assets such as outdoor storage, the appraisal methodology is critical—using an appraiser experienced with that asset type avoids mis‑applying self‑storage cap rates to boat or RV facilities, which could undervalue the property; and (4) The committee reviews global cash flow, meaning all income and debt obligations across every entity owned by the borrower, so existing mortgages on other properties affect the borrower’s personal DSCR. The speaker advises structuring the submission around these points to satisfy the credit committee’s expectations.

Chapters

Here's what the lender's looking for. These 7 items. This is the credit committee's checklist. So build your submission around it. DSCR on stabilized NOI first, not enhanced, not in place on value-add deal, just stabilized. The credit committee's floor is 1.25. Build to it from the monthly model. LTV and collateral. The appraisal needs to support the loan amount. So on a thin comp deal, The appraisal methodology matters. Make sure your lender uses an appraiser familiar with outdoor storage. A self-storage appraisal appraiser applying self-storage cap rates to a boat and RV facility will produce a valuation that may not support your loan. Global cash flow. They look at that. The credit committee looks at all of your income and debt obligations across all entities. So if you have other real estate with mortgages, those payments affect your personal DSCR.