The strategy to acquire property requires both equity and debt financing.

Together with our co-investors we provide the funds to meet the equity down payment that is anticipated for purchase of the residential property. The balance of the monies necessary to fund redevelopment, renovations and purchase of the property is to be debt. The debt financing is to be raised through banking institutions and/or mortgage brokers. The lenders will require a personal guarantee from both co-founders in order to secure the debt financing.

The investment from Eagle Rock’s co-founders and co-investors is applied towards the equity down payment of the purchase of the residential property. Debt financing will be required for the balance of the acquisition price as well as 100% of the development cost.

Eagle Rock will work with mortgage brokers and directly with lenders to achieve the most favourable financing terms and rates for new acquisitions, as well as any refinance options of existing mortgages. We will be responsible for preparing loan applications, discounted cash flow projections and other financial analyses.

Following completion of the redevelopment, the project will be refinanced using one of the specialists buy-to-let products sourced through our network of brokers and lenders. By using the increased value that was generated from the redevelopment of the property, the amount of out of the initial equity investment from the principals and the outside investors will be reduced. The property will then be rented and held as a long term income producing investment.

Eagle Rock will perform asset management in the same way as we manage all properties included in our portfolio. We will perform yearly buy and sell analysis for each asset in the portfolio. Additionally, market reviews will be performed to determine if all the monthly rentals are comparable to other properties to ensure that maximum returns are being achieved. Eagle Rock will enlist professional services for accounting/financial tax filings and legal advice as necessary.

Eagle Rock will perform the necessary property management in line with our property management principles. We will will inspect properties regularly and meet with tenants periodically to ensure that overall satisfaction is being met. We will coordinate all repairs or improvements to the properties with third parties and tenants as necessary.

If the Co-investors seek to sell the property, Eagle Rock will undertake financial analysis to evaluate the current market to ensure that the sale produces the expected return on the asset. We will meet with potential real estate brokers and agents to understand their valuation approach of the property. As the disposition of the property proceeds, we will review all marketing material, evaluate purchase offers, negotiate sales contracts and completion documents. We will also be responsible for obtaining all legal reviews and representation on contract matters. The proceeds of the sale (after the discharge of any relevant finance) will then be re-distributed to co-investors according to percentages of their initial investment.