La Quinta offers advisory solutions and services for debt and equity capital, for acquisition, refinance, construction of (Modular & Stick-Built), interim financing, value-add rehabilitation, available to all types of commercial property, single-family investor held, subdivisions, and business financing needs.
Capital is tailored to meet the best resources of Debt, Agency, Preferred Equity, Joint Venture participation, Mezzanine, Bridge, SBA, USDA, Private Capital, and other sources as listed on the "Home" page including a large array of alternatives designed to meet challenging requests.
Multifamily Experience and Resources:
FHA/HUD 223 (f) acquisition, refinance, market & affordable, all building class types
221 (d)(4) construction & substantial rehabilitation, market rate, low income, stick-built and manufactured
223 (a) refinance of existing FHA/HUD debt
241 (a) finance repairs, additions & repairs of existing FHA/HUD held
FHA/HUD programs are Non-Recourse including construction and perm as one close. Rates and Terms vary by product type(s) ranging from 85%-90%, and 80% cash-out, with fixed-rate periods of 35-40 years. Currently 2.20% for existing projects and 2.95% for development/construction.
FHA/HUD Low Income Housing Tax Credits (LIHTC) for the construction & restoration of, affordable rental housing is available.
Other Agency Programs: Offered through Freddie Mac, Fannie Mae, and Institutional debt, Equity, and other capital alternatives are available.
Bridge Funds: Offering private and institutional bridge programs necessary for sponsors to gain knowledge, opportunity, and time to meet requirements for permanent financing.
Equity & Mezzanine: A capital stack beyond debt requires experienced sourcing of Joint Venture, Preferred Equity, Common Equity, Mezzanine, to work in harmony with debt. La Quinta has the experience and resources for projects in need of debt & equity leverage. Available to existing and to be built projects.
Advisory Services When Needed: Available to owners, investors, developers, and builders regardless of experience or project type. Our goal is to provide you with “Advisory Services” when you need them, tailored to meet, and accommodate the size and scope of your project. We encourage and welcome your thoughts, and questions at any time.
Our Services: Can be arranged and tailored to meet client and project goals
Initial Sizing: Review of the initially submitted information concerning projects and sponsor(s)
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 Sponsor(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 Sponsor's existing reports, and when needed the ordering of an Environmental Phase 1, Survey, or/and ALTA Survey. Appraisals when ordered by La Quinta will contain assignment language. Feasibility reports as a full or limited study.
Sponsors 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 Sponsor 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. Sponsor(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 as listed above.
Capital Stack recommendations after Analysis: Debt, Equity as Common or Preferred, Joint-venture, Investment Banks, Agency, REITS, Family Offices, Institutional Private Funds, Proprietary Capital, International funds, SBA Capital to business, and combinations of.
Executive Summary re-write: Correctly tailored to the specific capital provider or appropriate capital stack offerings, and professional submission packaging of the capital request in accordance with market standards. (It is surprising how many requests for funding never get past these critical steps, or turned down due to lack of experience by Sponsors)
Advisory fees: No fees are usually assessed during the initial-sizing review stage. Upfront Advisory fees are then based per the Sponsors assignment and acceptance by La Quinta. The use of our work and related information can be used by the Sponsor without further assistance. This does not mean the Sponsor will have success unless there is in-depth knowledge of who is specifically lending for your project type, their guidelines, and are they really lending in the current COVID environment.
Important to note: Our work and associated upfront fees could be credited in part as outlined within our Exclusive Advisory Agreement. There are severe penalties for non-disclosures of all Sponsors pertinent personal information, including failure of Sponsor to submit names, contact information, and status of other capital providers the Sponsors projects have or have been presented to.
Why Use A Commercial Advisory Firm?: If you have ever thought about financing a commercial real estate property, the thought of using a commercial advisor may have crossed your mind. However, if you are like some people, you may have debated on using such a firm based on a belief that it is more expensive. This common belief is a myth. The reality is there are any number of ways in which you can save money, valuable time, and opportunity by engaging an Advisor to help you meet project needs and objectives. If you take the time to determine the value of using this valuable resource, you will see it is money well spent to engage services.
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