JV Commercial & Residential Subdivisions Development & Construction Financing
3% Down or Higher
Blended Bank First and JV Second Capital Structure
- Minimum $2,000,000 Joint Venture including bank financing on residential & commercial properties with the following terms:
- Blended Bank/JV
- Eligible Locations Eligible Properties
- Financing will be provided by a bank we arrange, plus private equity funds, as managed as a joint venture.
- Bank processing also carried out by us. (If Sponsor’s bank first is already approved and pending, we may be able to accept that structure and go behind the bank’s first).
- World-wide – select overseas, deal by deal
Residential subdivisions, commercial real estate properties including: multifamily, retail, c-store, office, warehouse, light industrial, flex, hospitality, resort, senior living, self-storage, medical/hospital/nursing home, special purpose and more.
- Land entitled with approvals only.
- No cannabis related – No one-off or scattered site Single-Family Homes).
- Acquisition or refinance, including development, construction of infrastructure and/or vertical, major renovations and more.
- For subdivisions, infrastructure as well as construction of the homes acceptable.
- $2 million to $100 million. Nothing smaller.
Transaction size Ownership Recourse for 1st LTV/LTC
Single asset, special purpose entity
Loan Term Origination fee Application fee
Full personal recourse for the bank’s first; no guarantor for the JV 2nd.
- Up to 75% LTV (projected stabilized), not to exceed up to 97% LTC. (total project costs all-in)
- 1st will be 60-75%; 2nd will be up to the combined 97%) Bank 1st will be market estimated at 5-7%;
- 2nd will be 9-12% private. Sponsor will deal only with the blended rate.
- 1 to 5 years; (with bank)
- 5% to 8% payable at closing for entire transaction, including 1st and 2nd.
- Fee of $5,000 is due with the accepted and signed Letter of Intent.
- Deposit payable upon acceptance of Loan Commitment to be used for 3rd party costs, legal and closing costs.
- Range is $20,000 to $50,000 (perhaps more for large complex transactions).
- Unused balance applied towards Origination Fee at closing. After the bank loan, priority return of JV partner’s investment, and then split between 10% to 40%, depending on the cash/equity the Sponsor invests in the deal -deal by deal Granted for sold parcels/lots/units @ 75% to 85% of sale price Set by bank for 1st only
- Full appraisal (MAI, state) or even a BPO;
- Phase 1 environmental, soils test, ordered by Lender at expense of Borrower.
- Existing reports less than 6 months old, completed by qualified firms, may be recertified.
- 45 Days
The Benefits of the JV Partner is you can return again and again and again with new deals no need to look for another investment partner, you can roll your equity from your first deal into your 2nd and 3rd, with the experience and knowledge from your very 1st transaction you can continue to add new deals and they will become like clock work.
• The JV Partner can be used to close Deal after Deal after Deal
•Close Multiple Deals Simultaneously
“Sometimes the best option is to share to get to the top”