What is a single definition of "equity financing"?
A higher leveraged financing option (gap financing), typically used when the existing senior lender prohibits subordinated debt financing.
Palm Tree Financial's equity structure varies based upon the following:
Stabilized cash-flowing properties
Repositioning or "value-add" properties
Asset Types: Multi-Family, Industrial, Mixed Use, Retail, Office and Hotel
Anticipated Investor Internal Rate of Returns (IRR): Institutional Fixed Funds 15%-20% Opportunistic Funds 20%-30% Private Equity Funds 30%-35% or higher
Equity multiple targets:
Institutional Fixed Funds 1.50x's or greater
Opportunistic Funds 2.0x's or greater
Private Equity Funds 3.0x's or greater
Equity Contribution Percentage: 50%-90% (varies on the strength of the project & asset type/condition)
Institutional & Opportunistic Funds 3-7 years
Private Equity Funds 2-5 years
Minimum Equity Investment $1,000,000 USD, no maximum Minimum Project Size $4,000,000 USD, no maximum Origination Points 3.0%-5.0%
Initial Documentation Required to proceed to a Term Sheet: Sponsorship Package -Bio's for all Principals (must include a list of current owned or previously owned real estate/businesses & experience), Bio's required on key employees -Financial Statements for Principals or Company -Credit reports for all Principals (within the last 90 days), (real estate and small private equity transactions only)
A completed Financing Request Form (see "Forms" tab at the top of this page). Executive Summary on the subject property/business or, Offer Memorandum on the subject asset if the transaction is an acquisition or merger
Color Photos of the asset and or color renderings Detailed Business Plan (private equity only) Detailed Sources & Uses of Funds Detailed Company Budget (private equity only) Detailed Construction Budget (real estate construction only) Detailed Construction Plans Five Year Detailed Performa Feasibility Study Business complete tax returns for the last three years Personal complete tax returns for the last three years on all Principals Current Business Balance Sheet and Profit and Loss Statement Previous Third Party Reports (if applicable) -Environmental -Engineering (property solutions report) -Appraisal -Owners Title Policy -General Inspections (roof, termite, etc,) -Survey Current Insurance Policies (copy of declaration page) Any other information you believe to be of importance please include
Private Equity transactions for publicly traded firms or privately held firms with annual gross revenue > $10.0 million USD do not require personal financial information on the principals.
Palm Tree Financial cannot complete a proper review and ultimately produce terms and or a quote we can stand behind without a complete submission package from you. Kindly submit a complete package electronically, we prefer all packages to be submitted via email/electronically, we do have the capability to receive large files electronically. If you are not able to generate some of the required documentation, Palm Tree Financial does offer documentation services (e.g. Performas, Executive Summaries, Source & Uses of Funds, etc), please visit the tab at the top of our website "Documentation Services Offered" for more details.
General pre-screen turn times are 3-5 business days.
PALM TREE FINANCIAL WILL NOT REVIEW ANY PROPOSAL FOR FINANCING THAT IS NOT A COMPLETE SUBMISSION FILE.
SPECIALIZING IN COMMERCIAL AND MULTI-FAMILY REAL ESTATE FINANCING