Your Partner in Development
Providing a Unique Lending Solution for Tax Incentives
Untamed Equity provides developers with the tools to get projects to the finish line. Our Tax Increment Financing (TIF) Monetization Loan Program is geared toward commercial real estate development in TIF districts and helping developers bridge gap equity.
TIF districts were originally created to renew slum and blight areas in cities around the United States. Many successful projects have been completed by leveraging TIF funds, from innovative historic renovations to groundbreaking public infrastructure improvements.
Generally, we monetize 3 types of TIF loans: 1) Pay-As-You-Go rebates 2) TIF Notes or Developer Notes and 3) Revenue Obligation Bonds. All of these types rely on the source of repayment being generated from property tax and sales tax increment rebates.
Bridging the Gap Equity
It’s a known issue in the commercial development industry that the lack of equity needed to close project funding can often cause deals to be delayed or to eventually fall through. That’s why the Untamed Equity team specializes in monetizing tax incentives and fueling economic growth in communities throughout the country.
By utilizing a TIF monetization loan, developers can fund equity in their current TIF project in order to bridge the gap and finish construction. If equity is needed in another project, the up-front funds received by this loan can provide an investment in a separate project that isn’t tied to the underlying loan. If working capital is need for other operating expenses or improvements in an owner-occupied site, the funds work there as well. The uses of TIF are vast, and developers are in an ideal position to take advantage of them.
Tax Increment Financing for Developers
How can TIF monetization loans benefit the commercial developer?
No Out-of-Pocket Investment
Instead of putting in your own money to fund the project, you’re putting in our partners’ money. The TIF loan reduces upfront cash requirements, and in turn, you can use that equity to build your capital stack, creating larger and quicker returns on investment.
Invest in larger incented projects
The funds received from TIF monetization on one project doesn’t have to go right back into the same project; instead you can use them to invest in other projects. You can also free up value trapped in incented stabilized projects for use in an unrelated project.
Push projects toward the finish line faster
Monetizing TIF allows developers a viable opportunity to get projects completed. And not only are the projects more likely to happen – they’re more likely to happen much faster and more efficiently than they typically would.
Learn More about TIF Benefits for Developers
Ready to turn TIF funds into cash up front?
Would you like to know more about how TIF monetization could be used for your next project? Untamed Equity’s team is ready to partner with you.
Not only will we structure the deal and originate the loan with a trusted financial institution, we will work with you every step of the way to service the TIF project until the loan is paid off. Our knowledge comes from years of experience in banking, commercial lending, and economic development.
We understand the challenges that developers face, and our expertise allows us to structure the most strategic deal for you and consult on the project along the way.
How We Help
Untamed Equity will analyze a TIF project to create a loan structure tailored specifically to your needs. We partner with a financial institution to hold the loan and collect all documentation through the loan closing.
Until the loan is paid off, Untamed Equity will maintain a strong relationship with the developer. We’ll manage any communications between the financial institution and the developer, perform annual reviews, generate statements, and ensure a seamless experience for everyone.
As renewals are needed, Untamed Equity will lead negotiations, update underwriting, facilitate investor approval, and document the renewal.
What we need to get started
Two items are needed for us to present a term sheet:
Development Agreement draft or final version
Projections of the property tax or sales tax figures
Our team will use our model and expertise to review these items and get you an initial term sheet so you can continue working on your sources and uses for your project.
Contact us today to learn how TIF monetization could work for your next project.