For Builders

Smart funding options for construction and development projects

Benefits of an iCap Equity Investment

The cash required of builders and developers is often the largest obstacle to obtaining funding for real estate projects. iCap Equity's investment model is designed to meet this cash need and allow builders and developers to take advantage of market opportunities.

Expansion

Allows builders and developers to expand their existing portfolio of projects.

Preserve Cash

Helps builders and developers preserve their cash and operate more comfortably.

Resources

Gives builders access to various accounting and legal resources of iCap.

Simplicity

Alleviates the need to negotiate complex equity investments or securities offerings.

 

How it Works

  • A new limited liability company (LLC) is created, and iCap makes its investment into this project LLC
  • iCap works with the senior lender to meet their lending requirements
  • The builder or developer reports monthly to iCap on the status of the project
  • iCap's investment is paid back when the project is refinanced or sold

Our Process

  • Submit the project details online or call 425.278.9030 to set up a call with an investment manager
  • Our team will review the project and follow up with further questions
  • If the project meets our requriements, we will issue a Letter of Intent (LOI)
  • After the LOI is signed, the investment documents are prepared for closing

Investment Criteria

  • Origination Fee: 3%
  • Preferred Return: accrues at 12%, but is not paid until the time of sale or refinance
  • Exit Fee: percentage of final exit price-value

  • Investment size: $500,000 - $5,000,000
  • Investment Period:  1-24 months
  • Combined Loan-To-Value (CLTV):  75% max, including senior loan plus iCap investment
  • Senior Loan:  builder is responsible for obtaining any loan or other financing needed from a bank or lender

  • Guarantee: iCap does not guarantee builder loans or sign on loan obligations
  • Locations:  Washington and Oregon
  • Builder Requirement:  minimum of five years experience with at least two years of recent experience

Frequently Asked Questions

No, neither iCap nor its principals will guarantee or sign on any loan obligations.

It usually ranges from 1% - 5% of the exit price or value; however, each project is assessed independently and the exit fee will vary depending upon the risk profile. 

You can call us at 425.278.9030.

Yes.

Yes, unless the 1st position lender does not allow a 2nd position deed of trust. 

Currently we are investing in Washington and Oregon.  We focus on the greater metropolitan areas of Seattle and Portland. 

It depends, and we will review each candidate on a case-by-case basis.

No; however, we require other collateral that pertains to the project such as a pledge of shares of the project entity in the event of default.

No, not currently.  We focus on acquisition, development, new construction, and note purchases. 

Multifamily, mixed-use, residential detached, residential attached, light commercial (strip malls, office buildings less than 5 stories, retail), and condominiums.  We do not invest in hospitality, warehouse, or office projects taller than 5 stories.

CLTV stands for combined loan-to-value and is calculated by adding the senior lender's loan amount + iCap's investment, divided by the exit price or value.