A Checklist for Church Loan Requests: Documentation You Need | Church Realty

A Checklist For Church Loan Requests: Documentation You Need

By | Financing Resources

Use this checklist below as a guide to help gather and organize the documentation needed for your church loan request.

CURRENT YEAR TO DATE FINANCIAL STATEMENTS

  • YTD Income and Expense Statement (also referred to as a P&L)
  • Budget Comparison (projected budget as compared to actuals)
  • Balance Sheet
  • Bank Statements and/or Quarterly Statements that verify cash and investments

YEAR-END FINANCIAL STATEMENT FOR THE PREVIOUS THREE (3) YEARS

  • Income and Expense Statements (also referred to as P&L Statements)
  • Budget Comparisons
  • Balance Sheets

SUMMARY OF ALL OUTSTANDING DEBT

  • Original loan amount(s) vs. current loan amounts
  •  Interest Rate(s)
  • Origination and maturity date(s)

PROJECT INFORMATION

  • Description of what are you trying to accomplish?  When?  Why?
  • How much money are you looking to borrow?
  • Project Information (construction documents, contractor information, budget, target purchase area, etc…)

DEMOGRAPHIC INFORMATION

  • YTD average attendance trends (by program, by age)
  • Previous three years attendance trends (by program, by age)
  • Membership numbers (by age and/or family units)
  • Giving Units
  • Total annual giving of your top 15 Donors – listed individually (no names)
  • Community demographics (if available)

GOVERNMENT OF THE ORGANIZATION

  • Articles of Incorporation
  • Constitution
  • By-Laws
  • Brief church history
  • Explanation of other entities you are formally affiliated with
  • Leadership bios
Temporary Church Space Could be the Permanent Solution | Church Realty

A Temporary Church Space Could Be The Permanent Solution

By | Real Estate Resources

Before you commit to lease or purchase a church facility, you must get clarity on who you are and what your ministry is called to do. Doing the groundwork to define your mission, vision, and values is an essential first step before pursuing real estate. The next step is to understand your capacity. Capacity is not only your financial capacity but also the market capacity, what it costs to rent, lease, or purchase a church building in your target area. Learning to optimize the temporary church space and operate in a way that will allow you to set aside funds for a future space will position the church to secure a facility if a facility is a part of your strategy.

When people join a congregation in a temporary church space, they often look forward to the day their church will have a permanent building to call home. They see the setup and tear down “phase” as merely a phase and are often anxiously awaiting a building. 

This is usually not just limited to the people; the planter also often feels that getting a facility shows that the church has “arrived.”  As a church real estate agent, I also had this view to some extent. Everything I did drove a church to a more permanent facility or a building.  However, I now have a new approach — coaching the planter to challenge what facility they think they need as it relates to their clarity and their capacity. 

Below are the stories of three different churches and how they are reaching their target area without owning a facility:

Temporary Church Space Could be a Permanent Solution | Church Realty

Church in the Center (CITC) in Houston, Texas

This church is located in the medical district around MD Anderson. CITC specifically reaches medical students and medical professionals in the medical center district. They often have a revolving door as many students are only in Houston for a season and then move on. 

They hold three different meetings during the week. They meet in different spaces and have not had an exclusive space for any time in their seven years of ministry. The spaces available in their area are limited and expensive. During the week, they utilize free or rented spaces for Sunday Worship, Bible Studies, and other gatherings. 

All of this has resulted in a consistent, but not expansive budget. Moving out of the medical district to secure a building would take them out of the place they have been called. CITC is exploring the options and counting the cost of each part of their ministry to determine if they should stay mobile or if they should secure a seven-day-a-week lease space.

City Church in Plano, Texas

 This church is meeting in the Angelika Theater in Legacy Town Center. Legacy Town Center is a mixed-use development at the center of one of the hottest real estate markets in Texas. Companies like Toyota and Liberty Mutual are joining Frito Lay and JC Penny as they call this area home to their corporate offices. 

City Church is five years old and has always been in a mobile location. To find a building or lease space, City Church would need to relocate to a different area. Pastor Ray Harmon shared with me that they have been called to the Legacy Town Center Area and he understands that relocating out of it would not be in line with who they are called to reach. 

City Church is looking to see how they can leverage the theater space and other spaces around them to be the best stewards they can so that they can be a generous church. Like CITC, City Church is in a high rent district, and the spaces that they may use look different than what they had pictured two or three years ago. By leveraging the Theater, engaging in Apartment Life ministry in Legacy Town Center, and ministering to the people who live and work in and around Legacy Town Center, City Church can show the love of Christ to many people without buying or leasing a building of their own.

Chase Oaks Church in Plano, Texas

This church planted a Hispanic Campus on the east side of Plano. Chase Oaks is a multisite church, but its Hispanic Campus functions as a church plant. The church meets in a local elementary school while doing seven-day-a-week ministry in the Chase Oaks Family Center just down the street. This ministry center allows Chase Oaks to offer ESL classes, Bible studies, and other ministry programming during the week. 

We have seen the ministry center concept work in Texas, California, and Seattle in a multisite context. The community center can be an excellent option to provide church planters with a midweek space to offer youth programs for their families.  

Buying a Church Building Isn’t Always the Destination

These examples show how you can successfully use temporary church space for your ministry without buying a church or building a facility. If your church is considering a space outside your target area, we encourage you to consider how that move will affect your ministry; sadly, we have seen a five-mile relocation contribute to a church plant losing core members and end up shutting down. Exploring every temporary option available can help you leverage your existing space at an affordable cost to keep the focus on the ministry in front of you.  In the meantime, saving cash to set aside to secure a space in the target area will prepare you to lease or purchase a space. In the examples above, real estate prices are expensive, and opportunities are limited.

Before Making a Real Estate Decision, Challenge Your Leadership to Answer the Following Questions:

  • Why do we need a building?
  • Have we maxed out the space we currently have?
  • Can we afford a facility in our target area? Know what it costs to secure a space. Save funds.
  • Are we ready to increase the amount we spend on a facility?
  • How can our church best utilize space in our target area?  

If you do not know the answers to the above questions, then we would recommend you pause before signing a lease or purchasing a building. 

Count the cost, get clarity, and develop an understanding of your capacity. 

A building or lease space is a tool that can add value to your ministry, but a facility that does not align with your clarity or capacity can cripple your ministry. A space that does not fit your budget or moves you away from your target area can cause you to miss opportunities to maximize your ministry. As you process your facility options, make sure your team understands why each option is the right space or the wrong space. Push your team to ensure you do not occupy a space for the wrong reasons. 

Remember, the church is not a building; a building is a tool to be used by the church.

Contact Church Realty for Help Finding a Temporary Church Space

We’ve helped so many churches across Texas find the real estate solutions that best fit their ministry and mission. We can help you, too! For experienced advice from real estate professionals who understand the needs of a church organization, contact our Plano or Houston office today.

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