Joint Ventures, Joint Venture Financing, Joint Venture Funding

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Commercial Funding International, LLC ("CFI") is a boutique commercial mortgage brokerage and consulting firm. We serve through our mission to be a catalyst to help achieve timely funding results for our Clients.

CFI has a large network that includes many sources with the potential to provide both Debt Financing and Equity Capital for joint ventures for USA and International real estate development projects and alternative energy projects. The following is a summary of just one of the joint venture programs CFI has to offer.

CFI has a source that can provide 100% equity financing that covers all project costs including: land acquisition, development, and construction and equipment costs. There is no interest charged during the term of the investment. Instead, the USA-based investment fund takes a minority equity position within the proposed project as compensation for the investment, with the buyout options determined during formal underwriting.

Investment Criteria for Joint Venture Financing: financing for all types of commercial real estate and alternative energy projects. In general, they must meet the following criteria:

  • The project is for NEW DEVELOPMENTS ONLY, needing $10 million or more;
  • The project must be shovel-ready -- defined as ready to break ground in 90 days or less;
  • The project must be sponsored by an experienced developer with a significant financial stake.
  • Asset-based loans, including In-Ground Assets;
  • Corporate expansion loans;
  • International Funding; and
  • Hard money loans.

Joint Venture Financing Project Types: (NEW DEVELOPMENT ONLY)

  • Hotel Resorts and Casinos
  • Assisted Living/Senior Housing
  • Apartment Buildings/Multifamily Housing
  • Alternative/Renewable Energy (i.e., solar, wind, hydro, geothermal, etc.)
  • Green Energy (i.e., biofuel/biodiesel, biomass, waste-to-energy, etc.)
  • Hospitals and Health Care Facilities
  • Infrastructure (roads, highways, rail, etc.)
  • College and University Buildings
  • Public-Use and Recreational Facilities
  • Industrial Projects
  • Other Related Types

Locations: USA and International, excluding: China, India, Africa, Russia and the Middle East (we have other potential sources for those areas)

Joint Venture Financing Terms:

  • 100% equity financing
  • Typically three to five year term
  • Non-recourse financing
  • No interest payments during term of investment
  • Minority equity stake in lieu of interest
  • Take out with permanent financing or sale

Time to Closing: 90 to 120 days

Refundable Due Diligence Deposit for the Joint Venture Financing:

As a condition of financing, the USA-based investment fund will require a fully refundable due diligence deposit that will be used to cover their underwriting expenses. However, if the project fails to close for whatever reason, the deposit will be returned in its entirety by the investment fund.

Joint Venture Equity Participation: During formal underwriting, the investment fund will determine its equity participation in the project--typically 15%-25%. As such, they will take a minority interest in the project until completion/stabilization when they will look to exit the transaction via refinancing, sale of the project, etc.

Joint Venture Equity Financing Advantages:

  • The developer pays no interest during the entire construction period--potentially saving millions of dollars in interest expense;
  • Because the investment fund participates as a 100% joint venture equity partner, they assume nearly 100% of the project risk until completion or stabilization;
  • Rather than the typical equity of 20% - 40% or more that is required in a traditional financing structure, the developer will only be responsible for a refundable due diligence deposit. This will allow the developer to reduce their up-front capital requirements while retaining a larger percentage of the project.

BROKER INQUIRIES ARE WELCOMED AND APPRECIATED.

IMPORTANT: If you are serious about securing funding, please email us a 1 to 5 page Executive Overview or feel free to call us first.

Commercial Funding International, LLC
Mr. Jerry O'Neill, Managing Member

"Real. Smart. Funding Solutions."

Office: (503) 245-2789
E-mail: info@commercialfundinginternational.net

Commercial Funding International and CFI are a Trademarks of Commercial Funding International, LLC.

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