Our initial step with a new client is to collect standard information that investors are likely to request. Please note that we are very serious about our clients’ privacy, so any information provided is kept strictly confidential.

As a brief overview, we typically ask for:

• Executive Summary and/or Business Plan
• Company History and Background
• Principals’ Résumés
• Summary of Present Financing Arrangements, to include Payment
  History and Payoff Information
• Property Photos, Appraisal, Structure Renderings or
  Construction Transactions
• Other information requested on an as-needed basis

Nearly all private investors have a ‘niche’ they like to work in, primarily because they’ve experienced a superior rate of return over a reasonable investment arc.  Therefore ‘industry type’ is the initial criteria for deciding what investor our client should be aligned with. Following that critical determination, loan parameters such as deal size and structure, operating cash flow and exit strategy (for equity in lieu of hard money) are considered.

Many investors also denote that even if a project doesn’t exactly match up with their criteria, they may still be willing to deploy capital on a case-by-case basis, as each project is unique.

Once we have secured an investor’s interest, terms and a deal structure are established. A Letter of Intent, or LOI, is sent from the investor with details of the preliminary deal structure, including the initial terms and what the investor is prepared to follow through with at closing. These terms are not set in stone, but function as a guideline for subsequent discussion. This is a point of negotiation where the client can either agree to these terms or counter.

Once the LOI is secure, we strive to close the deal in 45 days or less. However, since our investor partners play such an intrinsic role at this stage, that timeframe cannot be guaranteed. Black Diamond Capital Group consults with both teams to devise a workable, beneficial arrangement, applying our expertise and insights to reach an accord. Once that is achieved, a closing is set and capital is disbursed.  Please note that even if one investor is interested, we continue marketing a project until closing, simply to ensure you get the best terms possible.