Announcement: Stated Jumbo Program - Developer/Builder Restructure Program
Special Bailout Program for Developers and Builders using the Jumbo Stated Program.
For developers and builders having large amounts of completed properties on their books and need to restructure their current financing.
Need to have equity in the development.
Transaction would be structured as a purchase – Developer/Builder Company would sell to the Developer/Builder new company.
Developer/Builder can possibly “cash out” at closing depending upon equity position.
Developer/Builder would need cash consideration which is negotiable based upon current equity in the property.
Each property in the Developers/Builders portfolio would require the analysis fee.
Each property would be placed into a separate trust.
Each trust is non-qualifying assumable.
Exit Strategy -Developer/Builder can sell to buyers with no down payment and no credit check or they can require any amount of down payment and the buyer assumes the trust agreement. Property can be sold and closed in a day.
Developer/Builder can also lease out the property immediately.
To Get Started:
The program is flexible to try and meet the Developers/Builders circumstances. The above information is basic guideline for a starting point.
To get started you (Developer/Builder) must review the “Program Information Guide”. This will give you an excellent education on the Jumbo Stated program features. Click here
Then you will need to prepare an Executive Summary explaining the current situation – number of completed units in inventory, current total appraisal value, current total liens, location, description of units, (pictures would be very helpful), if appraisals are available, any further information that would be helpful in describing the complete circumstance. We will screen ALL potential clients before submitting any potential deals.
This program is not for construction money to complete development projects – it’s only for property that is in livable condition.
This program does require cash consideration and analysis fee – which can-not be taken out of equity.
Fees can only be determined after we’re able to review the Executive Summary and determine if there is a potential transaction. In most cases we’ll have a Fee Services Agreement with the Developer/Builder.
Potential for this product is enormous. There are countless number of Developers/Builders that are in dire need of finance restructuring. Let us be of assistance.
The minimum appraisal value of the developer/builder property is 100K per unit.
This is a program to assist developers/builders that have many properties, not the local builder that has 2 or 3. 10 with a minimum total value of $1M
Example of a transaction – (real deal – numbers have been changed for ease of calculating)
Developer/Builder has 100 completed units that have not been sold.
Each unit appraises at $100,000.00
Current liens on each unit is $60,000.00
Our investor approves the deal and will pay $80,000.00 for each unit.
Developer/Builder/Investor - because of equity position agree to a cash consideration of 5% or $5,000 per unit and because of the number of units agrees to a $2,500 analysis fee for each unit.
The Developer/Builder agrees to pay us an assist flat fee of $500.00 per unit
The closing costs run approximately $2,000 per unit.
Total cost for the transaction is $5,000.00 + $2,500.00 + $500.00 + $2,000.00 = $10,000.00 per unit
There is a $20,000.00 gross spread between the $80,000.00 the investor is bringing to the table and the lien payoff at $60,000.00 per unit.
With the Developer/Builder cost at $10,000.00 per unit the Developer/Builder realizes net positive cash out of $10,000.00 per unit which is $1,000,000.00
The Developer/Builder can now market the property for sale with no qualifying and no down or small down.
For further discussion on this please contact Charles. Charles@humble-homz.com