The Traditions Capital Process
All new builders and developers must be approved before Traditions Capital invests with them. Several members of Traditions Capital's management team are involved in the builder selection and approval process. Traditions Capital examines the builder's track record, financial condition, trade and credit references and insurance loss history. Approval takes about two weeks.
Once approved, a builder/developer begins submitting projects for consideration. Traditions Capital's project approval process is designed to identify suitable investments early and close them rapidly.
Preliminary Due Diligence & Financing Application.
The investment officer tours the site, develops a proforma and undertakes other preliminary investigation. A Project Financing Application, which is a brief report summarizing the principle strengths and weaknesses of the project, is submitted to Traditions Capital's investment committee for review. Traditions Capital's policy is to respond to all Financing Applications within 72 hours of submission.
Financing Application Letter and Deposit for Third Party Reports.
If the Financing Application is approved, a letter summarizing the terms of the transaction and authorizing Traditions Capital to contract for third party reports. With the execution of this letter, the builder/developer pays a deposit to cover the cost of these reports, including appraisal, environmental, and title.
Complete Due Diligence and Formal Investment Committee Presentation.
It ordinarily takes 3 to 4 weeks for the third party consultants to finish their work and for the investment officer to present a final recommendation to Traditions Capital's investment committee. The committee meets as needed, usually by telephone, to vote on investments. No further approval is required to fund an acquisition.
Once a project is approved, Traditions Capital’s legal team shepherds it through to acquisition. Traditions Capital’s legal group is extremely sensitive to meeting deadlines, and can move quickly to close projects after approval.