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Process
and Terms
The Connaught Process
Years of experience have helped us to refine
our underwriting and asset management processes to efficiently
service small to mid-sized land developers and homebuilders:
- We provide a timely review and decision on your financing
request so that your project stays on schedule
- Our project structure requires:
- Land use approvals that permit development of the
proposed project
- A fully capitalized project
- Market support for the project
- An experienced development team
- A complete and thorough business plan
- We support the execution of the project’s business
plan to ensure success
- Connaught Real Estate Finance’s executive team
provides the resources you need to address challenges as
they arise throughout the life of your project.
Terms
The Connaught investment program is designed to meet the
specific needs of various residential and mixed use projects.
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Connaught Mezzanine Loans |
Net Funding |
Mezzanine loans between $2MM and $10MM, with an unfunded interest
reserve to pay interest. Connaught can syndicate loans up
to $20MM in net funding.
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Pricing
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Maximum term: 3 years
Commitment Fee: 2% - 3%
Interest Rate: 17% - 35%
Loan Management Fee: $1,000 per million, paid monthly to cover
all expenses associated with the managing of the loan.
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Subordination Agreement with
Senior Lender
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Required |
Leverage
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Connaught will provide financing for up to 90% (LTC) of the
capital stack. |
Guarantees |
· Full recourse to Project Sponsor
· Cost and completion with “bad boy”
carve-outs
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