A New Jersey based home builder sought to diversify its real estate holdings with income producing real estate. However, most of their capital was tied up in home construction and lot inventory and as a result did not have sufficient equity to acquire new real estate. What they did have was a contract of sale on a property. The builder, aware of RFG and its lending capabilities, engaged the company to coordinate the equity and debt in order to secure 100 percent financing to acquire the apartment complex in Wilmington, DE.

RFG was able to demonstrate to its investor that the builder’s contract of sale created value for a JV equity investor. By properly staking the deal with 100 percent of the required equity, the deal was able to attract competitively priced 80 percent LTV non-recourse financing. The equity capital received a preferred return and 50/50 share of profits.