Schedule of Real Estate Owned (SREO)
A property-by-property list of every real estate asset a borrower or guarantor owns -- value, debt, income, and cash flow on each -- used to assess a sponsor's contingent liabilities, portfolio-level leverage, and actual hands-on experience with the property type and deal size being requested.
When to use this
Underwriters request this alongside the borrower's Personal Financial Statement, and use it for two distinct purposes: confirming the sponsor's real estate experience is a genuine match for the deal in front of them (a sponsor whose SREO shows only single-family rentals is a different underwriting story than one showing a portfolio of similarly-sized multifamily deals), and stress-testing whether the sponsor's OTHER properties could become a drag on this deal if one of them runs into trouble -- a portfolio-wide covenant default or a maturing loan the sponsor can't refinance elsewhere can pull liquidity away from the property actually being financed. Every property listed here should also appear as a liability (its mortgage balance) on the same guarantor's Personal Financial Statement; a lender who finds a property on one document but not the other will treat it as a red flag worth a direct follow-up question, not an oversight to quietly correct.
SCHEDULE OF REAL ESTATE OWNED (SREO) ======================================== Borrower/Guarantor Name: [NAME] As of: [DATE] For each property owned (directly or through an entity in which you hold an interest), complete one row. Add rows as needed. ------------------------------------------------------------ PROPERTY 1 ------------------------------------------------------------ Property Address: [ADDRESS] Property Type: [PROPERTY TYPE] Ownership % / Entity Name: [OWNERSHIP % AND ENTITY] Date Acquired: [DATE ACQUIRED] Original Cost: $[ORIGINAL COST] Current Estimated Market Value: $[CURRENT VALUE] Lender Name: [LENDER NAME] Original Loan Amount: $[ORIGINAL LOAN AMOUNT] Current Loan Balance: $[CURRENT LOAN BALANCE] Monthly Payment (P&I): $[MONTHLY PAYMENT] Maturity Date: [MATURITY DATE] Annual Gross Rental Income: $[ANNUAL GROSS INCOME] Annual Net Operating Income: $[ANNUAL NOI] Annual Cash Flow (NOI - Debt Service): $[ANNUAL CASH FLOW] Current on Payments? (Y/N): [Y/N] [REPEAT THE ABOVE BLOCK FOR EACH ADDITIONAL PROPERTY] ------------------------------------------------------------ PORTFOLIO TOTALS ------------------------------------------------------------ Total Current Market Value (all properties) $[TOTAL MARKET VALUE] Total Current Loan Balances (all properties) $[TOTAL LOAN BALANCE] Total Portfolio Equity (Value - Debt) $[TOTAL EQUITY] Total Annual Net Operating Income (all properties) $[TOTAL NOI] Total Annual Debt Service (all properties) $[TOTAL DEBT SERVICE] Portfolio-Wide DSCR (Total NOI / Total Debt Service) [PORTFOLIO DSCR]x