Our Process
Real Property Capital offers a distinct advantage over our competition.
Our business model emphasizes client satisfaction through a high-touch, analytical approach. Our knowledge of capital markets and our well maintained relationships with our network of capital sources allow us to source the best possible financing terms for each assignment in which we are engaged. This approach means we do not just shop for term sheets, but rather we work closely with the client and the lender through due diligence and closing. This tight control of information throughout the process is critical to ensure the transaction closes smoothly for the client. We do not charge a fee unless your loan closes.
Analytical Approach
RPC specializes in heavily quantitative financial analysis. Our analytical team has experience with virtually all asset types and boasts complex financial modeling abilities pertaining to the entire capital structure thanks to comprehensive and diverse experience. Every project that we originate is thoroughly analyzed and vetted before we decide to take on the assignment. As such, once we agree to work on a transaction, we have a high degree of confidence in our ability to place the loan. Our analysts are well versed in digesting even the most complicated cash flows and financial statements and have the ability to break down the numbers and present them clearly and concisely to our capital sources.
Financing Memorandum
Once a financing opportunity is thoroughly vetted for feasibility, we prepare and complete loan requests to share with our sources. Our extensive experience in the industry has taught us exactly what information lenders are looking for, enabling us to design our memorandums so that lenders can quickly and efficiently get to the heart of the transaction. These loan request packages include property overviews, property financial information, relevant market information, thorough underwriting, and sponsor credentials. Our memorandums are often praised as being the best, most robust loan request packages, which causes lenders to give our loan packages the most attention. The integrity of our work and depth of our packages provides confidence to our sources that the opportunities we bring to them are highly credible and well thought out.
Debt & Equity Network
Perhaps our most valuable resource is our network of capital sources. Through 25 years of collective experience in mortgage origination, our cumulative network of capital sources has grown to include national and regional banks, SBA lenders, agency lenders, conduits, credit unions, life insurance companies, pension funds, mezzanine lenders, and a variety of equity sources. While our competitive advantage is our intimate knowledge of the financing market in the Delaware Valley, our network spans nationwide and as a result we have closed deals in locales ranging from Florida to Colorado. Additionally, our constant monitoring of the debt and equity markets as well as our active pursuit of market color from our lenders allows us to thoroughly understand and negotiate where rates should be, making our quotes the best available. Our relationships with our lenders ensure that we can finance your deal at the best terms available regardless of size or location.
Flow of Information
Our experience in closing hundreds of loans has taught us that the most critical part of closing a deal is controlling the flow of information. Pre-cut lender due diligence requests are often overbearing, untailored, and intrusive on borrowers. At RPC, we negotiate the size and detail of due diligence requests before they reach our clients by deciding what is critical for lenders and what they can do without. Not only does this approach keep our clients’ personal financial information behind lock and key unless absolutely necessary, but it also cuts down on the length of the due diligence period, allowing our clients to reach closing in a timely manner. Control of information is 90% of the business.
Closing
In an increasingly stringent regulatory environment, lenders have been forced to add more red tape and tighten their restrictions on lending; gone are the good days of loose lending and seemingly free money. For investors who have not dealt with the process of obtaining a mortgage since the financial collapse, the aid of a competent intermediary is essentially a must. Through a thorough understanding of current requirements and anticipating issues ahead of time, our team goes to closing frequently and repeatedly. While sourcing excellent terms is a large part of our value-add, negotiating the details at the end of the deal on behalf of our clients is perhaps our most underrated quality. We fight for our clients from inception through closing, because repeat business is the core of our business model. We are not satisfied unless our clients are satisfied, and so we do everything under our power to ensure our clients are happy with the outcome of every transaction.
Fee Structure
Unlike many in the industry, RPC does not charge a fee unless your transaction closes. Our approach is to control the transaction, advocate for the client and charge a fee when the loan closes. At RPC, we firmly believe in the quality of our work and our ability to get deals closed. For this reason, we only get paid when the transaction closes. This honest and confident approach aligns our interests with those of our clients, preventing conflicts and ensuring that we are on the same team with the same goal.
