(1) To clients who need assistance with analysis, capital stack options, project analysis/performance, including additional services as listed within the "Menu of Services" including a well written Executive Summary suitable to capital markets without further assistance from La Quinta.
This does not mean the Client will have capital success unless there is in-depth knowledge of who is lending to your project type, their guidelines, including many crucial factors that impact the success for debt and equity, and the question are theses sources lending in the current COVID environment?
(2) Or, you can retain La Quinta to provide a large array of additional services not posted to the Menu below, including a Capital Stack arrangement on behalf of our clients through closing.
Menu of Services:
Initial Sizing: Review of the initially submitted information concerning projects and client(s)
Capital Stack: Provide, source, and arrange capital as debt, equity, joint venture, limited partner, or mezzanine per client and project needs.
Project Incentives: Review of incentives offered thru State, City, including affordable housing, low-income housing (LIHTC), and Grants
Agreements & Contracts: Review of purchase agreements and extensions, State and City incentive agreements, general contractor, property management, agreements suitable for the capital market acceptance.
Green Status: Providing and working with Architect(s) for the correct information to qualify a project for Green Status.
Entity: Review of all members BIO’s, percentage held, operating agreements, good standing verification, and when needed partner/member buy-out, or cash needs to partner/members who want to remain. Guidance for which members need to submit financials or sign on behalf of the existing or to be established single asset entity. Services can include debtor in possession properties and chapter 11.
General Contractor: G.C. profit contributions to enhance Client(s) equity. When performance bonds would be required, and bond premium assessment. G.C.'s experience review for the project type the G.C. is to build as it relates to access to specific capital.
Construction budget Review: General Contractors budget as (1) Entire project or (2) A phased project dependent upon project size, scope, liquid capital, pre-paid invoices, and land equity.
Property Management Review: Of existing income and expense records, or proformas. Including Property Management background, the number of units managed, and qualifications for management and annual audits as required by FHA/HUD multifamily programs.
Existing Property Review: Documents will vary dependent upon (1) Acquisition (2) Refinance (3) Value -Add Rehab as Cosmetic or Substantial.
Basic documents for review are 2 years and YTD Operating history, preferably in a T-12 format when possible. Month to Month Rent roll covering the last 90 to 120 days (Given COVID) must include lease expiration dates. Capital Improvement budget for the last 2 years and YTD. A Rehab budget when applicable. Value-add must include a rental income and expense proforma.
Third-Party Reports: Review of all clients' existing reports, and when needed the ordering of an Environmental Phase 1, Survey, or/and ALTA Survey. Appraisals, Feasibility reports as a full or limited study.
Clients Document Review: Full disclosure and review of submitted information including all negative history involving credit, defaults, Bankruptcy, defaults on any government loans, criminal convictions, including our request for and review of complete explanation Letters we request.
Project and Client Pre-underwriting Analysis: Once we have obtained and reviewed submitted information as we require: We will conduct an analysis of the over-all request, including Loan-to-Value, Debt, or Debt/Equity structures, and alternative capital sources. Client(s) credit/liquidity, other assets for cross collateral, or cash-out if needed. Net-operating Income and debt service analysis including Cap rates, and inclusion of other appropriate information.
Capital Stack recommendations after Analysis: A well-structured capital stack of Debt, Equity, or Combinations as outlined under “Capital” on this website.
Executive Summary re-write: Correctly tailored to the specific capital provider or appropriate capital stack offerings, and professional submission packaging of the capital request per market standards. (It is surprising how many requests for funding never get past these critical steps or are turned down due to lack of experience by Clients)
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