Evaluate tenant business in startup mode

[Nitin Aery]

Hi BP, 

I am in the process of working on my first real estate deal. The property is a commercial retail location with a long term (20 yrs) NNN lease structure. The numbers on the deal are pretty attractive and check off most of my criteria.

Without going into business name or field, The underlying tenant,'s business is a a private corporation that has about 40 locations (each in a separate LLC) across the US and have been expanding over the last several years.

So what's the hold up? :).

Initial glimpses at the financials show that there are losses for the corporation and the locations that are not yet stabilized.  I am looking for advice from the community on how to evaluate the Tenants business and statements for company financial strength/viability.  Things to look out for, questions to ask, any advice pertaining to evaluation of the tenant.  Since the bank/lender Imwill finance from has significant skin in the game, how much credence should be put into their due diligence of the business / deal?

On the lending side of the deal, I am looking to secure a (don't laugh!) 85% LTv loan for 7-10 yrs balloon and 25 yrs amortization. Yes, numbers still work, DSCR is still above 1.5. Any leads on reputable lenders that would pursue this loan?

thanks in advance

Nitin