Criteria for Family Office Funding

[Mike Weiner]

Hello All;

I work with the intake officer of a Family Office management company, who has given me specific guidance on how they work. These criteria are for information any Principal might need to know if this is a target funding market. Family Offices (Ultra High Net Worth families that establish an office to evaluate opportunities and recommend investments) are out there, but they can be quite difficult to develop a relationship at first.

FOR INFORMATIONAL PURPOSES ONLY: This is not a solicitation for Deal Flow nor an offer of Financing.

Here is the overview:

Property Types: apartments/multi-family, hospitality, mixed-use, office, retail, warehouse, light industrial, selfstorage, and marinas. We can consider churches, restaurants, and gas stations on a very selective basis. Other scenarios, including land will be considered on a per-transaction basis at lower leverage.

Loan Types: Opportunistic Acquisition, Refinance, Renovation, Redaptive/Redevelopment, Partnership Buyouts, discounted debt buyback, Bridge to SBA/Fannie/Freddie/FHA, and Bridge-to-Stabilization. We also like "story" transactions and bankable "Quick Close" scenarios.

We will also review Bankruptcy, Foreclosures; Hotel PIPs, Tenant Improvements, CapEx, etc.

New Construction considered in major markets on a select basis. All scenarios must have strong exit plans. Debt, Mezzanine/Preferred Equity.

Geography: Nationwide (major metro areas, reasonable population areas preferred)

Loan Size: $500,000 - $100,000,000

Loan Term: up to three (3) years

Loan to Value / Loan to Cost: Up to 75% LTV/LTC. Up to 85% LTC/LTV on multi-family. Up to 80-85% LTV/LTC mezzanine/preferred equity.

Interest Rates: 5.99% - 12.99%. Premium sponsors could qualify as low as 5.99% - 8% on larger transactions.

Loan Fees: 2-6 total lender/broker points. We will not accept submissions from brokers or intermediaries who charge upfront retainer fees. Our investors will pre-underwrite a complete package prior to issuing a LOI. The underwriting fees prior to closing could include costs to cover property visit, sit down meeting with the borrower, along with standard processing and legal fees. The appraisal fees will be charged separately. In select situations, a phase1 environment report may be required.

Closing: With a complete package, we can close within 15 – 21 days.

Amortization: Interest Only

Prepayment: Six (6) Months of Guaranteed Payments.

Recourse: Recourse and Non-Recourse.

Credit History: Most of these loans are not credit score driven, but credit history will be evaluated to determine risk and future qualification if exit strategy involves refinancing.

Documents Required: Following the initial screening questions, we will require a copy of recent tri-merge credit report (use link below), personal financial statement, proof of funds/ last six months of bank statements, profit & loss statement for the property, use of funds statement, exit strategy, copy of MLS listing (if applicable), existing mortgage documents, any local comps, appraisal, or BPO that can be provided, collateral disclosure, copy of leasing agreements (if applicable), contact information or property insurance company, copy of declaration page for property insurance, copy of driver's license, contact information for any existing lien holders so we can order payoffs, and digital pictures of the property (interior, exterior, neighborhood), and last three years of person/business tax returns.