How much due diligence does a lender do on tenants?
When evaluating tenants and the leases, how in depth does a lender go? Do they look at financials? Do they do a LexisNexis search on the tenant? What documentation would the landlord need to provide to the lender on the tenant?

Thanks in advance.
[{"id": "i3p6hik", "text": "T12 and rent roll", "replies": [{"id": "i3q7dwh", "text": "Is this primarily for residential tenants, commercial tenants, or both?", "replies": [], "depth": 2}], "depth": 1}, {"id": "i3peeog", "text": "Commercial tenants? They want to see leases and PGs. Then they'll want an estoppel certificate from each tenant.", "replies": [{"id": "i3s5xko", "text": "Thanks", "replies": [], "depth": 2}], "depth": 1}, {"id": "i3pkdgz", "text": "Depends on the income concentration. If it\u2019s a single tenant retail building, you better believe the tenant will be underwritten. Likely involving credit analysis on the tenant\u2019s 10k, financial ratios, etc.. if it\u2019s a 30 tenant industrial flex building with a diversified rent roll, it\u2019s a lot less likely", "replies": [{"id": "i3qbzlt", "text": "What if the tenant is a mom and pop deli? How would the lender evaluate the tenant? Do you think financials or P&amp;L suffice? And is it standard practice to receive these from the tenant? I'm sure it differs from lender to lender but thanks for answering the questions.", "replies": [{"id": "i3qskxv", "text": "With a less sophisticated tenant they might ask for the tenant\u2019s annual sales report. They might look into the lease to see if there\u2019s a guaranty.  It will vary by lender and by market. From my experience in lending, stronger you are as a sponsor/borrower, the less emphasis they\u2019ll put on underwriting at the tenant level.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i3pqka9", "text": "I have sold a number of multi-tenant strip centers and office buildings. The lender didn't review any of the financials for any of the tenants. They reviewed a certified rent roll (signed and dated by seller or seller's broker) and the last 2 full years of tax returns for the seller of the property (to verify income/expenses - to see that is was close to or matched the rent roll). The lender then always asked for Tenant Estoppel forms...which would need to match the info on the rent roll.", "replies": [{"id": "i3s5stq", "text": "Would you know what happens during a refinance? I would imagine a certified rent roll from the owner of the building would be less credible.", "replies": [{"id": "i3sh8su", "text": "On a refi, they are going to look at the rent roll and compare it with the income on the tax returns to see if they are similar or match (also may ask for P&amp;L for the past 2-3 years). I've had clients refi properties with anywhere from 15-50 tenants and they never requested the actual lease agreements. If the \"story\" behind the numbers match what you are giving them, you shouldn't have an issue....unless you are trying to hide something.", "replies": [{"id": "i3shscc", "text": "Got it. Thank you. Wanted to know what kind of things I should ask for from future tenants.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "i3sqi3r", "text": "&gt;They reviewed a certified rent roll (signed and dated by seller or seller's broker) and the last 2 full years of tax returns for the seller of the property (to verify income/expenses - to see that is was close to or matched the rent roll).\n\nThis is most common.", "replies": [], "depth": 2}], "depth": 1}]