U.S. only: 100% JV financing for your new construction multifamily, hospitality, assisted living and retail projects

[Mike Haines]

Does your construction project require JV Financing? Please email me your project details at [e-mail] or call me at 949-215-7183.

Overview

We provide 100% joint venture financing that covers all project costs including land acquisition, hard costs and soft costs. There is no interest charged during the term of the investment (typically 3-5 years). Instead, the fund takes an equity position within the proposed project (typically 15%-20%) as compensation for the investment, with the buyout options determined during underwriting.

Investment Criteria 

We provide 100% financing for all types of commercial real estate and alternative energy projects.  In general, they must meet the following criteria:

• This program is for NEW DEVELOPMENT PROJECTS ONLY that require $10 million or more;
• The project must be shovel-ready--defined as ready to break ground in 90 days or less;
• The project must be sponsored by an experienced developer, with a track record in the scope of work to be performed, and with a significant financial stake.

Our Process

Our process begins by submitting a completed Project Summary Form, along with an executive summary or business plan including financial projections and a team profile.

The project will be reviewed for free to ensure that it meets the fund's investment criteria (this is not a full underwriting of the file, only a review to determine that the project meets the fund's investment criteria).

Upon receipt and acceptance of a full funding package, a LOI will be issued within 10 business days.

After the LOI has been issued, the developer will be invited to participate in a conference call with the fund manager.  This will provide an opportunity to speak directly with the person responsible for funding the project.

Only after the developer's questions/concerns have been satisfied will they sign the LOI and submit the due diligence deposit as articulated in the LOI. Once this step is completed, the project is placed into formal underwriting.

Due Diligence Deposit and Equity Participation.

As a condition of financing, the investment fund will require a due diligence deposit that will be used to cover underwriting expenses.  The amount and terms of the deposit will be fully articulated within the LOI.  The required equity participation will also be articulated within the LOI, typically 15% - 20%.

100% Joint Venture Equity Advantages

The advantages of this financing structure are several:

• The developer pays no interest during the entire construction period--saving millions of dollars in interest expense;
• Because the fund participates as a 100% joint venture partner, they assume nearly 100% of the project risk until completion or stabilization;
• Rather than the typical 65% LTV available from traditional lenders, the developer be financed for 100% of the total project costs, including both hard and soft costs.

 Ready to get started?