To take advantage of market opportunities, builders need funding, flexibility and flow. iCap Equity structures investments designed to support developers and builders so they can expand their portfolio and focus on what they do best.
How it works
iCap bridges the gap between sponsors and senior lenders.
iCap Equity forms a new limited liability company with a predetermined investment amount.
iCap works with the sponsor and senior lender to meet lending requirements.
iCap meets with the sponsor monthly to make sure the project remains on track.
When the project is refinanced or sold, the sponsor repays the senior lender, iCap Equity, and then collects the profits.
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 - $3,000,000
Investment Period: 12-18 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, USA
Why work with iCap?
Allows builders and developers to expand their existing portfolio of projects.
Gives builders access to various accounting and legal resources of iCap.
Simplicity & Focus
Alleviates the need to negotiate complex equity investments or securities offerings.
Who can benefit the most from iCap?
iCap Equity has years of experience helping builders achieve their goals. We’re looking for builders with the same kind of experience. If you have five years of successful development, with at least two years of recent experience, you’re eligible to submit a project to iCap.
If you think your project is the right fit for iCap, submit the project details online (link) or call 425.278.9030 to set up an appointment with an investment manager in person or via phone. Our team will review the project and follow up with further questions .
If the project meets our requirements, we will issue a Letter of Intent (LOI). After the LOI is signed, the investment documents are prepared for closing.
Will iCap Equity guarantee a loan?
No. Neither iCap nor its principals will guarantee or sign on any loan obligations.
What is a typical exit fee?
A typical exit fee ranges from 1% - 5% of the exit price or value. However, each project is independently assessed, and the exit fee will vary depending upon the risk profile.
How do I submit a project to iCap Equity?
Please complete this form to start the due diligence process.
Does iCap Equity allow broker fees?
Yes, unless the 1st position lender does not allow a 2nd position deed of trust.
Where does iCap Equity invest?
Currently we invest in Washington and Oregon. More specifically, we focus on the Seattle and Portland metropolitan areas.
I've previously declared bankruptcy, will iCap still invest?
iCap Equity reviews each candidate on a case-by-case basis.
Does iCap Equity require a personal guarantee?
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.
Does iCap Equity invest in rehab projects?
Not currently. We focus on acquisition, development, new construction, and note purchases.
What property types does iCap Equity invest in?
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.
What is CLTV?
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.
Submit a Project
iCap Equity is always looking for new partnerships and opportunities. If you have a project that you think would be a good fit give us some information in the form linked below and we’ll be in touch.