We tailor our investment process to each particular opportunity. Typically, after several discussions with the developer, we will prepare a detailed financial model to aid in pricing and structure. We will then provide a letter of intent (LOI) that specifies the key terms of our proposed investment. Once we have agreed upon the terms, we will begin an intensive due diligence process.
Our due diligence is centered on interaction between the developer and our team, which includes our strategic advisors, and on third party research of the local economy and real estate market. We will also involve outside attorneys, accountants, and other professionals or industry experts, as needed. We perform background checks on, and get credit reports and personal financial statements from, our developer partners.
As soon as we begin due diligence, we prepare an executive summary of the business and begin sharing information about the project and the investment with our investors. We will host a webinar with the developers and give them the opportunity to explain their background and the project to our investors. As due diligence continues, we develop a full private placement memorandum (PPM) for our investors. This document details every significant aspect of the business and the investment.
Our goal is to close and fund every real estate transaction within 90 days of signing the LOI.