What type of financing does Olympus provide?

Olympus Capital specializes in asset based financing solutions for unique real estate opportunities. Products include land acquisition and development loans, participating loans, pre and post entitlement loans, distressed asset purchase loans, etc. We specialize in residential developments including first and second homes, recreational and resort properties and commercial projects with mixed-use components. We also provide bridge loans, refinance existing debt, and finance development partner buy-outs. We pride ourselves on coming up with creative solutions to unique financing challenges.

Do you have any geographic limitations?

We will consider loans anywhere in the US and Canada; however, we specialize in loans in the Western part of the US. Our distressed asset business is focused on Washington, Salt Lake, Utah, Wasatch and Summit counties in Utah, Clark County in Nevada, Maricopa, Pinal and Pima counties in Arizona, Boise, Idaho, and Albuquerque, NM.

What is your typical loan size?

Our loans average about $10.0 million; however, our comfort zone is anywhere between $1.0 and 50.0 million.

How much does an Olympus Capital loan cost?

Every transaction is different; however, our annual interest rate is as low as 3-month LIBOR + 500 basis points. Some loans do not require an interest reserve or monthly debt service, and there are generally no pre-payment penalties. Accrued interest is payable at the time the loan is due. Origination fees depend on a variety of factors including the term of the loan, loan amount, type of loan, the financial strength of the borrower and the loan economics. Fees generally start at 6 points.

What are some of the factors that determine the final interest rate and fee for each loan?

In no particular order: The term of the loan. The degree of entitlement risk. The financial strength of the borrower. The project economics. The track record and experience of the development team. Soundness of the development plan. The amount of borrower equity in the deal. The project LTV. Size of the development reserve required. Market conditions. The exit strategy.

What is your typical loan term?

The majority of our acquisition and development loans mature in 12-18 months. Bridge loans and debt refinance loans are generally shorter in duration. In every case, we try to match the loan term to the project need and the exit strategy. Our goal is to tailor a financing package that allows the project to advance to the next logical financing point.

How quickly can Olympus fund a loan?

We have developed an orderly process that allows us to conduct thorough due diligence, visit the site, document and fund a loan. In a perfect world we like to have about 3 weeks from the initial introduction to the closing of a loan. We recognize; however, that the world of private lending is seldom perfect and Olympus can fund in as little as 48 hours.

Yes. Our due diligence is very thorough and complete and is one of the keys to our success in this challenging business. Our fees are based on the loan amount requested and are a minimum of $15,000 plus $1,000 for each $1.0 million requested. The due diligence costs include site visits, background checks, project review and feasibility, valuation, lending law review, borrowing entity review, etc. Due diligence fees that are not used are refundable. There are no additional fees charged for issuing a loan commitment.

You mentioned a “development reserve”, what is that and how does it operate?

The development reserve consists of monies that are placed in a reserve account at a major bank at the time of closing and act as a construction loan. The reserve funds are accessed on a typical construction draw basis as the work is performed. Qualified development reserve expenses may include: engineering, impact fees, site work, entitlement activities, property taxes, overhead, sales and marketing.

Do you require personal guarantees?

We generally require personal guarantees from the borrowers; however, we do make non-recourse loans on a case-by-case basis.

Do you require a current appraisal?

We prefer to have a current appraisal on the subject property; however, it is not a prerequisite to funding a loan. Most of our focus is on establishing and determining the value of the land at the maturity date of the loan rather than at the time of the loan. With land values declining in many parts of the country, it has become increasingly more difficult to rely on appraised values to set loan amounts. We have developed proprietary methodologies to determine future land values that we rely on to supplement professional appraisals.

Do you deal with Brokers?

Brokers are important part of the Olympus Capital network. We welcome and compensate for quality loan referrals. In most cases, the broker fees are paid at loan closing.

What makes Olympus Capital unique?

First of all, we are in the business of financing quality real estate development projects, not just in the business of making loans. We understand the challenges of land development from both a time and cost perspective. We tailor our loans to meet the needs of the project and are one of the few lenders that can provide both land acquisition and development financing. We are backed by a strong institutional partner and always have the ability to fund a good project. We know the development game and through our due diligence process can often uncover issues that the borrower may not know about. We are an excellent financing partner and have the ability to provide follow-on financing should a project take more time or cost more money that originally anticipated…we are in it for the long haul if necessary.

How have the dramatic changes in the US real estate market impacted your lending criteria and approval process?

Falling land values and the lack of liquidity in the credit markets have made it increasingly more challenging to effectively underwrite a loan in a short period of time. Generally, we are moving away from deals where there is significant entitlement risk remaining, and moving more towards financing distressed asset acquisitions and broken deals.

Why should someone consider using Olympus Capital to finance their real estate project?

We operate in a space where it is very difficult to determine who is a real lender and has the money and who is simply a broker trying to facilitate a transaction. Olympus Capital is the real deal. This year alone we have financed over $150 million in quality real estate developments. We are very selective in what we will consider and what we fund - anyone who isn't will not be in business very long in this challenging market.