The biggest obstacle for most real estate sponsors is wrapping up that equity piece to close a deal. Always has been, always will be, its the nature of the beast and we understand that. That's why we are launching our Participating Equity platform, a structure whereby we provide up to 85% LTC for a project and then partner with the sponsor on the remaining equity/down payment need on a 67/33 split, 67 from GenX Lending, bringing in up to 95% capital stack and allowing the sponsor/developer to keep more in the coffers, juice their IRR and most importantly conserve dry powder for the next deal.
HOW IT WORKS
Fill out and submit the Quick Loan Summary found on this website (or submit your package to Loans@GenX-Lending.com) with the deal particulars and request Participating Equity in the summary portion. If the deal makes sense we will offer our Participating Equity structure which is typically up to 67% from GenX Lending for the remaining equity and 33% from the sponsor. However, in almost all cases we structure the profit share 60/40 in the sponsors favor but NO FEES are taken out during the project's development, with ALL profit disbursed at the sale of the asset or at refinance.
NOTE: The Participating Equity is co-terminus with our debt component and is paid off at the sale of the asset or when our fist position is refinanced out. Additionally we ONLY provide this structure when we are financing the first position as well, NO exceptions.