[h5]High-Yielding Equity u0026amp; Secured Debt Programs[/h5]
[h4]Bridge Capital Partner[/h4]
[h4]Series 10[/h4]
Bridge capital is typically required for short-term (interim) investment horizon investors with small and large capital funding capabilities. This category is deployed as temporary financing solutions for projects that may not currently meet commercial lending requirements, due to underperformance or property condition.
Funding will be used to improve and bring project to market value; therefore, improving cash-flow and meeting lender criteria. These investments are paid off by long-term refinancing with CEP’s Takeout Funding Partners, post rehab property resale or refinancing via traditional lending programs upon reaching the stabilization period.
10.1 Community Rehabilitation
Funds for rehabbing property acquired with traditional cash purchase, private acquisition funding or controlled properties to bring project to current market rent values. Project rehabilitation scope will range from minor to extensive overhaul based on degree of previous owner’s deferred maintenance level.
10.2 Working Capital (Operating) Reserve
Funds used to cover investment project operating reserve requirement established internally or by commercial lender. The capital serves as a prudent means to set aside reserves for specific issues related to operating multifamily investments during the “holding period”. Additional reserves will be scheduled from monthly cash flow to cover additional anticipated operating needs. All reserves will be set aside and earmarked within a separate account solely for specific urgent operating needs.
10.3 Option Fee u0026amp; Earnest Money Funding
Funds used to secure income producing property future purchases. Master lease program leveraged to creatively control projects with owners in need of exit strategy. This category is ideal for small investment amounts, but will require several turns annual to achieve interest rate goals. Short terms ranging from 60 days to 120 days.
10.4 Loan Restructuring Program
Funds used for working with financial institutions and property owners in acquiring financially distressed properties, due to unfavorable loan term. After successful loan restructuring negations, funds will be provided for curing of underlying financing instruments.
10.5 Acquisition Equity Funding
Funds used in conjunction with commercial lender relationship funding. Typically used for equity contribution requirement based on commercial lending criteria. (Short-term)
[h4]Takeout Funding Partner[/h4]
[h4]Series 20[/h4]
Takeout capital is long-term financing designed to takeout short-term or bridge funding. This category requires larger funding requirements with longer investment time horizons. Funding from this group refinances / pays-off bridge capital partner category investors post project achieving stabilization. Partners are given the option for CEP to repurchase via collateral repurchase agreement. This provides the investor an option to exit prior to initial investment time horizon.
20.1 Portfolio Capital Takeout
Funds used to take out underlying short-term funding typically provided by CEP’s bridge capital partner (series 10) or commercial banking relationship with new 1st lien long-term loan amortization inclusive of balloon payment up to 60 months. Typically based on low loan-to-value properties and refinancing of stabilized CEP portfolio performing cash-flow projects.
20.2 Portfolio Facility Takeout
Use of borrowing capacity to takeout underlying short-term funding typically provided by CEP’s bridge capital partner (series 10) with new 1st lien loan ratio based on commercial lending terms and includes both non-recourse and recourse collateralize by project. Typically based on low loan-to-value properties and refinancing of CEP portfolio stabilized performing cash-flow projects. Available option for partners who lack large capital funding capabilities. (Credit score requirements apply).
[h4]Acquisition Funding Partner[/h4]
[h4]Series 30[/h4]
Acquisition funding partners provide capital for all cash property purchases and/or for equity contribution requirements based on commercial lending criteria. Funding is primarily for new vetted investment opportunity compared to the Takeout Funding Partner (series 20) that focuses on existing CEP portfolio projects. This category requires larger funding requirements with longer investment time horizons and focuses on new portfolio acquisition additions.
30.1 Acquisition Capital Funding
Funds used to acquire properties with new 1st lien positions collateralize by project without bank funding. Long-term loan amortization inclusive of customized balloon payment options (short or long-term), but usually 60 months. Typically based on low loan-to-value ratio for underperforming properties and/or optimal performing (momentum play) cash-flow projects.
30.2 Acquisition Facility Funding
Use of borrowing capacity to acquire properties with new 1st lien positions with bank funding. Typically based on optimal performing cash-flow projects considering lender requirements. Available option for partners who lack large capital funding capabilities. (Credit score requirements apply).
30.3 Acquisition Equity Funding
Funds used in conjunction with commercial lender relationship funding. Typically used for equity contribution requirement based on commercial lending criteria. (long-term)
[h4]Syndicate “Pooling” Investments[/h4]
[h4]Series 40[/h4]
This is our group funding option and is offered to prescreened investors via a Private Placement Memorandum. Several options are available for accredited, non accredited and sophisticated investors based on deal size and structure. Deal structure may also include Joint Venture Agreements, Fracationalized Trust Deed or Mortgages and/or Limited liability Company. Regardless of method, full disclosure documentation required by Securities and Exchange Commission will be provided. Syndicate partner options include debt and/or equity partnerships inclusive of collateral repurchase agreement.
40.1 Private Equity Group (Small Scale Projects)
Small pooled group investment opportunities are formed for smaller scaled multiplex projects. Upon final determination of status, invitations to join our group may be extended. This affords the individual investor an opportunity to participate with a well-organized group of like-minded, sophisticated and possibly non-accredited investor partners in the ownership of an income producing property.
40.2 Private Equity Group (Large Scale Projects)
Large pooled group investment opportunities are formed for multifamily apartment complexes. Due to the nature of project size, this group tends to dictate the requirement of meeting the accredited and/or sophisticated investor status. Private Placement Memorandum is typically the preferred method for syndicate creation. Upon final determination of status, invitations to join our group may be extended. This affords the individual investor an opportunity to participate with a well-organized group of like-minded “accredited” and “sophisticated” investor partners in the ownership of an income producing property. In some cases, a limited number of membership will be reserved for “non-accredited” investor partners.
[h4]Turnkey Portfolio[/h4]
[h4]Series 50[/h4]
Partnering with CEP to build a hassle-free real estate portfolio. Personalized portfolio strategy based on availability of funds and credit facility capabilities. Funding sources to include CASH, IRA without loan, IRA with non-recourse loan, funds pooling or credit facility. Both tax favorable and non-tax favorable options. Also, this option may include hourly consulting fees for initial plan assessment.
50.1 Wealth Alliance Partner
This program is focused on building a personalized real estate portfolio designed with the passive investor in mind. Can be deployed as a method to augment current monthly income or used to replace 100% of annual salary. Typically invested outside of IRA account, if planning to replace current income within a 5 year time period.
50.2 Real Estate Income Annuity™
CEP proprietary product designed for retirement and legacy planning. Tax-free wealth building tool designed to create income and/or family legacy. Based on similar principle for our Wealth Alliance Partner, but also includes a broader financial planning view. This option is typical deployed for retirement planning purposes; therefore, seeks to leverage benefits of Roth IRA, Roth SEP, ROTH SIMPLE and Roth Solo 401(k). Typically, invested within tax-sheltered vehicles with a minimum of 5 year horizon for tax-free income.
[h4]Solutions for Active Investors[/h4]
[h4]Series 60[/h4]
Deal sourcing for experienced real estate investors who need flow of multifamily prospect. Included both large and small investors. Consulting fees to be paid by the buyer upon a successful seller negotiation and assignment of contract.
60.1 Real Estate Wholesale
Our wholesale program is designed specifically for the experienced investor that has the skill-set and resources to acquire, refurbish and manage properties. Although, we focus primarily on providing passive investment opportunities, the wholesale offering provides CEP with an avenue to pass along deals that may not fit our strict investment criteria.
