Financing a Golf Course

1. Personal financial statement
2. Borrower's personal background, or resume
3. A property description including exact location, when built, architect, yardage, cart paths, acreage, square footage of buildings, etc.
4. A list of all fees, dues, menu prices, etc.
5. Marketing materials, brochures, menu, score card
6. A property history - known previous owners, historical highlights
7. A recent property appraisal 
8. A detailed three year cash flow history
9. List of accounts payable
10. A list of accounts receivable
11. Financial statement with balance sheet
12. Bank statements up to three recent years
13. Statement of use of funds
14. An up-to-date property survey
15. A detailed history of rounds played
16. A membership list
17. A recent market analysis
18. A complete equipment inventory (serial numbers of large machinery)
19. A complete merchandise for resale inventory
20. Copies of insurance policies, tax returns
21. Copies of all permits and licenses
22. List of all debts
23. Loans and leases
24. Environmental surveys
25. Source of irrigation water, consumption rates, and up-to-date permits
26. Proof of compliance for storing items like fuel and chemicals, etc.
27. Engineers structural report on all buildings
28. A summary of key personnel -including salaries, job descriptions

Most lenders will not lend on golf courses if the trailing 36 month cash flows indicate an inability to carry the proposed debt. Golf course loans are considered business loans by lenders and even if the property is being purchased for less than appraised value, the lender's decision will only be based on the ability of the 'business' to service the debt. 

First time golf course buyers may have a problem with a golf course loan application especially if the LTV is more than 65%. Many experienced golf course lenders want to see their borrowers with a reasonable amount of experience in the golf course business. One way around the lack-of-experience issue is to include an experienced golf course person in the executive summary of the business plan.