Debt Placement Memorandum (DPM)
A DPM is a detailed offering document presented to potential lenders describing the property, borrower, loan terms, and risk factors for debt financing consideration.
| DPM Section | Content |
| Executive summary | Deal highlights, loan request, returns |
| Property overview | Location, specifications, condition |
| Market analysis | Supply, demand, comparable properties |
| Financial projections | Historical and forecast NOI, cash flows |
| Borrower background | Track record, experience, financials |
| Loan terms requested | Amount, rate, term, amortization |
| Risk factors | Market, property, borrower risks |
| Preparation Process | Timeline |
| Data collection | 1 to 2 weeks |
| Financial modeling | 1 week |
| Document drafting | 1 to 2 weeks |
| Legal review | 3 to 5 days |
| Lender distribution | Concurrent to 5 to 10 lenders |
| Response period | 2 to 4 weeks for term sheets |
| Total timeline | 6 to 10 weeks typical |
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