Participants
Why Untamed Equity?
Partnering for the Greater Good
Untamed Equity specializes in providing financing for projects that contribute to economic growth and community development. We offer expertise in navigating the complexities of historic tax credits and TIF programs, providing tailored loan structures and collateral options. By partnering with us, borrowers gain access to the necessary capital to fund their projects while leveraging the potential tax increment payments and/or historic tax credits as collateral. This collaboration facilitates the realization of development goals and contributes to the overall prosperity of the community.
Why Participate with Us?
- We do the Business Development
- We do the Structuring
- We do the Underwriting
- We do the Servicing
- We do the work, you get the fundings and interest income
Investor / Participant Appeal
- Superior risk adjusted yield
- Less risk of refinance with TIF maturities ranging 15-30 years
- Fixed interest income
- Economic development component
- Diversify within real estate; possible CRA credit
- High credit quality; repetitive program underwriting
Our Services
TIF and HTC Bridge Lending Services for Participants
Untamed Equity works with developers and municipalities to originate and service large commercial loans in TIF districts, which simplifies the financing process all around. Our expertise allows us to enhance economic development projects of all kinds by leveraging the power of TIF monetization and HTC bridge lending.
Origination
Our origination services make participations easy because we handle everything from sourcing the deal, analyzing the model, creating a loan structure, collecting documentation, and closing the loan.
- Business Development
- Analysis of the model to create the structure
- Compilation of the loan package
- Collecting all supporting loan documentation
- Closing the loan
Servicing
Until the loan is paid off, Untamed Equity will continue servicing the project. This includes the analysis of increment payments and maintaining our relationship by managing communication between the lending institution and the developer.
- Calculating and managing interest reserves
- Annual Reviews
- Communicating information among borrowers and participants
- Managing delinquency/default if necessary
- Generating statements for the borrower and participating institutions
- Processing the loan payments
Renewal
As renewals happen, Untamed Equity will lead the entire process to make it as seamless as possible for all participants.
- Leading renewal negotiations
- Updating underwriting
- Facilitating participant approval
- Documenting the renewal
CRE Loan Services for Participants
Utilize our experience of over 40 years in banking with CRE loan services.
Services
- Underwriting loan presentations
- Managing the closing process
- Performing annual reviews
- Credit monitoring
- Portfolio sensitivity analysis
Benefits
- Improve your audit processes and due diligence
- Outsource to save on salary, benefits and avoid the recruiting process
- Become proactive managing your portfolio instead of reactive
- We do the work so you can get to the decision!
Participation / Investor Package
Our tax increment financing (TIF) and HTC bridge loan programs offers a comprehensive service package designed to facilitate successful development projects. The loan structure provides flexible financing options tailored to meet the unique needs of each project.
With a clear understanding of the project background, our team collaborates closely with clients to determine the scope, objectives, and desired outcomes, ensuring alignment with local economic development goals. An amortization schedule is carefully crafted, outlining the repayment plan for the loan, taking into account project timelines and expected cash flows.
We offer expertise in project management and ownership, providing guidance and support throughout the entire development process, from planning to execution and ongoing operations. By analyzing the property proforma, we assess the project’s financial viability, examining projected income and expenses to determine the potential return on investment.
Additionally, our guarantor analysis evaluates the creditworthiness and capacity of the guarantor to fulfill their obligations, offering an added layer of assurance to lenders. With our comprehensive service package, we aim to maximize the success and impact of TIF-funded projects, fostering economic growth and revitalizing communities.
What we do
Growing Relationships
The relationship between Untamed Equity and the loan participant is multifaceted and mutually beneficial. As partners, we establish strong relationships to fund TIF/HTC bridge loans that create a fixed income loan portfolio. Our investors are often interested in diversifying their real estate portfolio and see these loans as an attractive investment opportunity. The collateral for these loans is the tax increment payments, providing a secure and reliable source of repayment.
With a national footprint, we are able to offer TIF/HTC bridge loans across various locations, supporting enhanced economic development within communities. These projects often align with Environmental, Social, and Governance (ESG) initiatives, promoting sustainability, and community well-being. Because TIF is utilized to improve areas of communities that need it most, TIF loans are usually eligible for CRA credit for our participant partners.
Additionally, our TIF and HTC bridge loans can be tied to tax credits, opportunity zones, and other incentive programs, maximizing the financial benefits for both the borrower and investor. We value partnerships that can connect us to potential investors, fostering a collaborative network to drive successful loan participation.
Collateral
Our tax increment financing (TIF) loan program offers a robust package that ensures the successful execution of development projects. We require personal guaranties from the developer, providing an additional layer of security. The collateral includes the assignment of the Development Agreement and the Tax Increment proceeds or TIF Note/Bond, safeguarding our interests in the project.
Furthermore, the TIF increment payments, covering both principal and interest, are directly routed to us from the municipality, streamlining the repayment process. A Promissory Note, coupled with an Amortization Schedule, outlines the repayment plan, enabling clear visibility of payment obligations. To mitigate risk, our loan agreement incorporates a shortfall payment or Loan-to-Value (LTV) language, contingent upon the guarantor’s payment.
Additionally, our position is secured as the senior lien holder, prioritizing tax payments and further safeguarding our interests. With these measures in place, we aim to provide a secure and efficient financing solution for TIF-funded projects, driving economic growth and development.
As an investor/participant in a tax increment financing (TIF) loan or Historic Tax Credit (HTC) Bridge Loan, your role is simple. Before loan closing, you execute a basic Participation Agreement. At the closing, you will fund your designated share of the loan amount, ensuring adequate financing for the development. In return, you will receive monthly interest income proportional to your participation share of the loan amount, providing a steady return on your investment.
To keep you informed and updated, you will receive regular monthly and annual statements outlining the performance of your investment. Additionally, you will be provided with access to relevant documentation related to the transaction.
