What We Do

What We Work to Accomplish

 

¨ Increase the probability of achieving the lowest cost of capital and successful funding by identifying investors and lenders that would consider funding the requested amount given the nature of the project, the market conditions, the financial condition and experience of the sponsor. Based on the successful outcome of initial projects, subsequent transactions with the same investors tend to be at a lower cost of capital; investors and lenders, tend, to increase the amount of capital available to the Client.

¨ Increase the probability of sponsor being presented with multiple proposals, which should enhance their negotiation position with both existing and new lenders and investors.

¨ Increase the stable of investor / lender relationships available to fund projects on a timely, consistent basis.

¨ Assist Client in developing financing relationships, which will allow Client to meet or exceed their business plan.

¨ Provide Client with “immediate” access to lenders and investors. Relationships with investors and lenders may take several years to develop.

¨ Develop equity and debt relationships who, will react quickly, enabling a more competitive environment when biding on new projects.

 

What We Do to Make This Happen

 

¨ Given our knowledge of investor programs; Advise Client with regard to cost of capital and structure / terms (i.e. risk management).

¨ Introduce Client to multiple lenders and investors (with traditional and untraditional programs) to fund a variety of diverse land entitlement, development and home-building projects. The selection of investors and lenders are based upon the business plan of the Client (i.e. product type, geographic location, volume, net worth). These investors and lenders are usually interested in long-term associations with our Clients.

¨ Develop plan for presentation of projects to lenders that are project-oriented versus credit-oriented when needed.

¨ Develop plan for presentation of builder organization and projects to lenders that are credit-oriented.

¨ Work with (manage) appraisers; providing them with project and market information (which supports the anticipated absorption and pricing) and answering their questions (follow-up).

¨ Prepare computerized lender cost spreadsheets linked to Client spreadsheets if possible (for each and every loan throughout the life of the project).

¨ Preparation of a professional financing marketing package (if needed).

¨ Monitor loan capacity (loan to one borrower) and working with Client, look forward to determine potential borrowing problems and need for additional lenders & investors.

¨ Introduce the Client to investment programs, which are cost effective (i.e. mezzanine financing).

 

How Fees are Determined

 

¨ Supply and demand for our services and the terms under which those services are rendered (i.e. exclusivity & registration/protection of investors and lenders).

¨ Volume of services ordered by Client (i.e. the more projects and dollar amount Client asks CFI to finance, the more the fees may be discounted).

¨ Ongoing fee coverage with lenders and capital providers is warranted due to the extensive efforts provided. Capital investment is more of a marriage between builder and investor. Swings in philosophy and market conditions can be an ever-changing environment with capital and debt providers. We continue to monitor the market and make recommendations to the builder.