Invest
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Preserving Generational wealth through commercial real estate
Our investment strategy leverages a data-driven and rigorous due diligence process, informed by the extensive experience of our leadership team. We meticulously evaluate and select investment opportunities across a diversified portfolio of real estate asset classes, markets, and borrower profiles.
Product
Construction
Bridge
Stabilized Bridge
Up to 65%
Up to 65%
Up to 65%
Up to 65%
Up to 65%
Up to 65%
Up to 65%
Up to 65%
Up to 65%
Up to 65%
Up to 65%
Up to 65%
Up to 65%
Up to 65%
Up to 65%
Up to 65%
1% of AUM
Management Fee
16%**
Estimated Levered Debt Yield
12%*
Anticipated Unlevered Debt Yield
LEVERAGE STRUCTURE
ARC Family Office
+
Balance Sheet Capital
+
WarehouseLine
=
IncreasedDebt Yield
ARC Family Office underwrites and originates loans for the Family Office balance sheet
ARC Family Office then assigns the warehouse line to the loans from the Bank Partner
Loan leverage Is optional and subject to Investor Yield Requirements & Risk Sensitivity
After servicing fees, proceeds are first used to repay the senior tranche principal at a fixed rate
Once the senior tranche is paid, the remaining proceeds are paid to the junior tranche
Loan CapitalStack
Warehouse Line
→
Senior
8% fixedUp to 70% UPB leverage
8% fixedUp to 70% UPB leverage
Balance Sheet Capital
→
Junior Tranche
Initial Yield + Spread
Initial Yield + Spread
Example: $1M Loan @ 12%
Example Loan Cash Flow (Interest) = $120,000
Warehouse Lender with 70% UPB @ 8%: $700,000 * 8% = $56,000
Family Office Balance Sheet 30% UPB: $120,000 - $56,000 = $64,000
$64,000 / $300,000 = 21%
LEAD GENERATION & UNDERWRITING PROCESS
- ARC Family Office Is direct to Borrower’s and Principles
- Use online data to pre-qualify and conditionally approve borrowers (AVM, census, FICO, property data, etc)
- Review background
- Upon collateral value confirmation, issue a term sheet
- Order an appraisal at Borrower’s expense
- An underwriter reviews entity documents, liquidity requirements, verifies experience
- Any exceptions go to the investment committee
- Upon approval, the loan goes to closing, typically with a 3rd party settlement agent or attorney
- Loan submitted to 3rd party Servicer
SERVICING AND DRAW PROCESS
- Servicer collects payments, pays out lender spread
- Servicer can handle any default or workout procedures
- Borrower can request a new draw online; they must have already completed the work using their own capital
- National 3rd-party construction management company is dispatched to perform on-site inspection
- Based on the provided report, we reimburse a percentage of the budget, based on the work completed
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