How to Write an Executive Summary to an Investor

It is always a good idea to send an executive summary when contacting an investor about a deal. If a helping hand is desired, the following ”tutorial” may be helpful:

How to Write an Executive Summary to an Investor

When reviewing a business opportunity one of the first things an investor looks for is the executive summary or investment summary. A well written executive summary shows the quality of the broker, principal, and the value of the project. The goal of well written loan summary is to give the potential investor enough information to understand the potential investment to determine if it will be a fit.

Below are items that should be included in a well written and complete executive summary.

Salient Facts

Investors want to know the details of the commercial real estate. Purchase Date, Purchase price, Amount Owing, Property location, property type, number of units, lot size, and the square footage are all important.

Also include the amount needed and property liquidation value. If the property is being acquired, include the purchase price. If timing is important, please mention it. Real Estate Appraisals, Environmental Reports, and other Due Diligence may require a duration of time. If your deadline is approaching, you might want to mention it. If a foreclosure occurred, you should mention the date of the auction sale and, if sold, the redemption amount and redemption period expiration date.

You might also include useful ratios such as Investment to value (ITV), and the debt service coverage ratio (DSCR).

Project History

Include a project history for commercial property that is currently owned by the borrower. This should include the date of acquisition, acquisition costs, and any improvements or monies spent on the project.

Exit Strategy

Investors are looking to see what the exit strategy is for repayment.

Sponsor Summary

The sponsor or principal summary should give relevant facts about the sponsor, but should not be their life story. A more detailed description of the principal or principals entity can be included in a sponsor’s resume. A good summary might look like this: Fictitious Development Company was started in 1989. Since its inception it has developed 32 properties with over 1,000,000 square feet of retail space. With combined sales of $120 million. Or: Fictitious Properties Group began acquiring multifamily properties in 1993. Fictitious currently owns in excess of 4,000 units in 7 states with rental revenue in excess of $3,000,000. If a website is referenced, it is important to provide the web address.

Sources & Uses

This section details the utilization of the investment proceeds as well as the source of any other funds needed for the project. A table or spreadsheet format is most helpful and looks cleaner.

Property Financials

Relevant information regarding the current or projected rental income of a building should be included. The value of income property is determined by dividing the property’s net operating income by a capitalization rate suitable for the market location. Gross Income, total expenses, and vacancy are needed to determine net operating income.


Keep an executive summary short, no more than two pages. Include enough detail for the investor to understand the deal and to determine if it will fit in the investor’s parameters. Never mislead or lie on an executive summary. A well written executive summary is often a reflection of the professionalism of the broker submitting the proposal.

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