Caritas Capital Partners
59 Elm Street, Suite 230
New Haven, Connecticut 06510
•Screening: Prior to the formal application process, CCP screens each candidate for real estate experience and relative financial liquidity and strength
•Application: A 3-Fold Process, including:
Application: designed to elicit information on business structure, available collateral, and debt obligations. Personal Financial Statement: examines personal holdings in the form of savings, stocks, real estate, and credit accounts, as well as liabilities
Credit Release: allows CCP to inquire as to the Applicant’s relevant financial history
•Selection of Property: Upon selecting that perfect investment property, Rehabbers submit a package to CCP including the sales contract and estimated renovation budget. Once these have been approved, CCP orders a full property inspection and appraisal by our team of experts.
•Underwriting of Property: Once the property has been inspected and appraised, our in house appraisers get started with the underwriting process. Because it is the crux of what we do here at Caritas, this process is extremely detailed and thorough.
Full Breakdown of Funds - Purchase Cost, Closing Points, Interest, Rehab Advances
Assumptions – Loan Terms, Extension Fees, Interest Rate, Loan-to-Value Ratio
Source of Repayment – Primary and Secondary
Project Description – Building Characteristics, Type of Units – Bedrooms, Bathrooms
Estimated Rents for each Unit
Debt Service Coverage Ratio
Annual Operating Expenses – Taxes, Maintenance, Management, Insurance, Utilities
•Loan Granting: If the transaction hits all of our key analytics, CCP grants the loan to the Rehabber. A Promissory Note is issued and the loan is secured by a Mortgage, an Assignment of Leases and Rents, as well as a personal guarantee. Caritas Capital Partners requires our rehabbers to provide a 15% down payment (we NEVER finance 100% of any project).
•Renovation and Acquisition of Tenants:
Renovation: Once the funding has been established, renovation work begins. Even though the cost of this work is included in the borrower’s total loan, CCP does not release these funds until the Re-Developer submits a disbursement request. Once received, we dispatch our Property Inspector to check that the work claimed has been satisfactorily completed.
Acquisition of Tenants: Near the completion of the renovation phase, the Re-Developer acquires tenants and has them sign onto a lease agreement, which is then reviewed by CCP and our Attorneys.
•Refinance: After the property has been renovated and leased, we work with our clients in packaging their properties for refinancing with a conventional bank. As an alternative, some clients sell the property at the end of their 4 or 6 month term.