Overview:


ACQ Capital is providing equity capital for a broad range of ventures including: start-up, expansion, real estate development, R & D, acquisitions, debt-reduction and non-profit organizations. Our funding capacity is the result of a joint venture with two hedge funds and a major German bank. ACQ has already met all underwriting requirements, leaving only due diligence and underwriting of the project requiring capital and being provided secondary assets, specifically real estate (“real estate assets”).


Problem: Many good projects either go unfunded or fail due to a lack of capital. To the astute investor, the issue ultimately reverts to “risk” and the possibility of “loss of capital” while the potential ROI is very secondary.
Solution: ACQ Capital has developed financial vehicles to solve a variety of problems associated with funding projects by mitigating risk. The solution requires ACQ Capital, together with its partners, utilize these real estate assets in a manner that creates investment capital WITHOUT encumbering or pledging the real estate as collateral at any time.
Real Estate Asset Criteria:

The Project (any individual, partnership, LLC and/or company requiring capital) desiring capital funding must provide real estate assets to be utilized as part of the funding package. The criteria is narrow, specific and non-negotiable.

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The Project must provide qualifying real estate having an appraised equity 125% of the amount of capital desired/requested. The Project may utilize real estate owned by 3rd party(s). Multiple properties may be utilized.
The Project must provide a current, acceptable institutional quality appraisal.
Minimum appraised equity must be greater than $1,500,000. The quality of the appraisal is essential.
“Existing debt” cannot exceed 30% of the appraised value. If existing debt exceeds 30%, the Project may reduce debt to meet this requirement, but any reductions must occur prior to submission for Bank underwriting. ACQ will not advance funds prior the issuance and execution of a binding Bank funding contract.
Most types of real estate is acceptable: Single Family Residence; Residential, Commercial & Industrial Income; Hotels; Development land; Ranch; Agricultural
Title to the real estate and existing loans remain exactly as they are and must remain exactly the same throughout the term of the funding contract.
Prefer California, but not geographically bound, including international.


Funding
Process:
With acceptable real estate assets in place, funding is typically structured as follows:
 
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ACQ Capital causes a funding contract to be issued by ACQ’s Bank to fund the amount of capital investment required by the Project
The agreed capital investment is distributed over 12 monthly distributions.
The Project becomes a party to ACQ’s Bank funding contract, thereby assuring the Project will receive their capital investment on a timely basis.
Title to the real estate does NOT change for the current owner at any time. The current owner of the Assets continue to own, operate and maintain the Assets for the term of the agreement.
Closing for the initial funding typically requires 60 days from the date the appraisal is received.
Risk to the
Assets:
The Assets become part of the Bank funding contract but NOT utilized as collateral to support a loan, nor are the Assets pledged, hypothecated or encumbered at any time. No liens of any type are recorded by either ACQ Capital or ACQ’s Bank against the property at any time.
General Terms: Investment Range: $1,500,000 minimum / $50,000,000

Consideration to ACQ: Typically equity in the Project, negotiated on a performance oriented earn-out basis. Every transaction is tailored to the specific project, giving consideration to the Project quality and status, management team, track record and other relevant factors. The management team must gain an appreciation of the value of capital, recognizing the capital is the only party taking any real risk and therefore, must take steps to mitigate risk. ACQ will not provide the required real estate to support funding for any other Project, other then the Project it is intended to support.

Liquidity Event: 3 to 5 years

Consideration to the Owner of the real estate: The Project management team will negotiate the provider of the real estate, a separate and independent agreement whatever level of consideration or participation they will receive in the Project. ACQ Capital does not participate in these negotiations at any level, but full disclosure of the nature of the agreement.