The First National due diligence process pragmatically includes a thorough analysis of a facility’s current business operations, regional demographics, and local market. Because First National knows the business of golf, we know how to value golf course properties and facilities; helping you maximize your borrowing power. We evaluate golf course operations as retail cash businesses, taking into account the revenue streams generated by all departments. Leveraging our experience in the marketplace with thorough analysis, we can assure that both First National and the borrower make prudent decisions.

First National utilizes a three-pronged approach to golf course facility valuation:

• Cost Approach: considers the actual cost and replacement costs of the asset.
• Income Capitalization Method: an estimation method which takes into account all the revenue streams and expenses associated with the property for a forecast period and then discounts the net cash flows back to a capitalized asset value.
• Sales Method: compares the property under consideration to similar properties recently sold, taking into consideration similarities in the property and geographic proximity to the subject property.

When considering construction loans, First National additionally seeks to assess the future operating potential and overall value of the completed project. We will verify that proper course operating practices have already been implemented or are planned in order to ensure the course’s successful and profitable operation.