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Joint Venture Facilitation Contract by gzs10466


Joint Venture Facilitation Contract document sample

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									 Joint Venture Funding - SBLC Leverage Program
IMPORTANT: By reading beyond this point you agree, acknowledge and accept that this is a private encoded
communication of privileged, proprietary and confidential information and you agree to keep it private. The sender is a
consultant/intermediary and makes no warranties or representations as to the information and/or documents provided
and/or to any financial transaction(s) that may result from this information, Further, all due diligence is the full
responsibility of the Principles involved.


USD $5M to $750MM Partnerships. We have an appetite for income producing properties, such
as hotels, motels, apartment complexes, sub-divisions, medical buildings, assisted living projects
as well as jumbo residential property above 10 million dollars and business/personal capital
growth needs.

Qualifications: 10% of requested amount with a USD $1M minimum. (No leased funds or
instruments allowed)

                    For submissions where the 10% amount equals $4 million and above
                     the process begins immediately.

                    For submissions where the 10% amount is below $4 million down
                     to the USD $1M minimum, submissions are stacked and require
                     additional processing time.

Areas: USA, Caribbean, Canada, Europe, South Africa, Australia, Japan, Mexico and areas that
are not considered high risk due to government instability or terrorist related issues. All project
values are calculated in US Dollars.

Joint Venture Split

75% Principle/25% JV Group. The JV Group is bought out at closing and the venture belongs
100% to Principle. Net funding amount after this expense (and all other expenses) is historical 10
times downpayment amount.

With the JV Program, you pay no interest or principle payments, ever! The funding amount that is
generated through our exclusive leverage program is provided in the form of a loan from a major
world bank. The loan is non-recourse with no monthly payments, no accruing interest and is
forgiven at the end of 1 year. At that time the loan amount becomes profit and does not have to be
repaid. There will be tax consequences on the profit amount and client should be prepared for this
certain event. Be sure to consider this when determining the actual amount required.

Point Charge = 10 points which is paid out of the proceeds. Client nets 10 times the downpayment
amount after the 10 point charge and all other expenses. Sample; client needs $40M for
construction project. Client puts 10% into escrow and is funded $40M (historical).

Submission Requirements for consideration/approval–

                               Executive Summary with principle resume
                               Proof of 10% Cash Downpayment - must be liquid

How It Works:

Sample: You have a contract to purchase a USD $40M office complex or residential construction
project. You have a successful track record in this field. You provide proof of the required 10%
downpayment (liquid) - our funding group wants to be your partner!

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Key Program Features:

       A USD $200M Stand By Letter of Credit (SBLC) can be leased with an initial capital
        outlay of USD $4M.

       The maximum amount a client can enter into this program is USD $40M.

       Initial client capital outlays of USD $4M lease a SBLC with a face value 50 times the
        initial value. E.g. USD $4M leases a USD $200M SBLC.

       The leased SBLC is monetized (cashed out) for 40% to 70% of the face value of the
        SBLC. The higher 70% takes additional time (typically one week longer) before the cash
        is delivered to the client via an authorized attorney acting as paymaster.

       Typically, the whole process takes approximately 4 to 7 weeks (this time frame is based
        upon historical transactions but is subject to change) from the deployment of the initial
        capital to the payout of the cash profit to the client.

       Additional fees are paid (from the monetization proceeds) of approximately USD $6.5M
        for every USD 100M face value issued (these fees are based upon historical transactions
        and are subject to change). These fees are paid to the SBLC provider once the SBLC is
        monetized. Hence, these fees are paid only on monetization success so there is a vested
        interested in the SBLC provider to ensure the SBLC can be monetized.

       The client enters a 50/50 profit sharing arrangement with the program provider.

       The client’s funds are placed into a neutral third party bonded attorney’s escrow account
        where they remain throughout the whole process. One year and one day after the SBLC is
        issued, the clients initial capital funds are delivered to the SBLC provider for the final
        installment payment for the leased SBLC. Well before the final payment is ever made,
        the client receives their initial capital back PLUS their percentage of the profits from the
        proceeds of the monetization of the SBLC.

       The delayed initial client capital payment (over one year later) along with other capital
        safety features (escrow attorney is bonded by Wachovia, integration of the leasing and
        monetization process, SBLC’s provider having skin in the game, etc.) ensures the client’s
        funds are not at risk. There is a 15-day clause where the client can request/receive their
        original capital funds without depletion on non-performance.

       If personally desired or necessary for larger projects, the client can re-enter the program a
        second time.

       This methodology works very well for a client to leverage funds to secure project funding
        (although a project is not formally required).

The Process:

Step 1:
Submit Executive Summary and proof of 10% liquid funds. We review and get back to you within
3 to 4 business days with JV Group opinion.
Step 2:
If opinion is favorable we issue NCND and Program Application. Principle completes and returns
along with the application/introduction fee.
Step 3:
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If approved, an Engagement Funding Contract is issued outlining the terms and approximate
funding date. At this time the already paid application/introduction fee becomes non-refundable.
(If not approved application/introduction fee is immediately returned).
Step 4:
We then schedule a conference call between you and the JV Group Project Coordinator to answer
any questions. You sign and return the Engagement Funding Contract along with the $30K
facilitation retainer. Retainer is returned upon funding.
 Step 5:
Upon receipt of retainer a conference call with the JV Group Managing Partner is scheduled for
Step 6:
Compliance docs are issued to client. Client completes and returns.
Step 7:
A funding contract is issued within 5 banking days from receipt of compliance docs.
Step 8:
Client signs contract, returns and wires 10% downpayment to program approved bonded attorney
escrow account. Funds remain in this account for 12 months. (Client may visit attorney to
complete this step. Time is of the essence and visit must occur within 72 hours of contract being
Step 9:
Funding occurs approximately 4 to 7 weeks from receipt of downpayment.

Application/Introduction fee is refunded if no firm commitment is issued.

Fee and Fund Summary:
$5,000 Application/Introduction fee (Refundable if not approved)
$30,000 Facilitation (fee is credited back at closing)
Point charge- 10
Funding Amount to Client – 10 times (historical) the downpayment amount

Please Read Carefully:

THERE are no guarantees made or implied to funding dates. Only upon proper application,
approval and issuance of contract from provider/escrow attorney can an approximate funding date
be determined.

AS this document is typically passed on via intermediaries to potential clients, it is important to
note that an intermediary can never quote definitive returns or procedures to a client.
Intermediaries may have knowledge of past historical details but these details are not necessarily
predictive of future procedures or returns. Only the program provider, in direct discussions with
the client has the ability and authority to give any specific quotations for future potential results.
Hence, the client can only know the definitive details of a potential transaction as a result of
discussions with the program representative(s). The client will have the details that can be
definitively relied upon only after the final issuance of a contract. This document is not to be relied
on as a definitive source of information related to this program as all details may be subject to
change. The client must refer to the final contract provided by the program provider/escrow

THE program “Steps” outlined above is not negotiable. The outlined steps may change from time
to time so it’s prudent to check before actual submission to determine if any changes to the
outlined steps have occurred.

JOINT Venture References: This is not public information, these are not mortgage loans and there
is no HUD. Funding of these projects is a direct result of our success in the private placement
platform arena and managed by a licensed law firm. Therefore, all partnerships are held in the
strictest of confidence bound by client/attorney confidentiality and non-disclosure agreements.
Pressing for information on our private partnership agreements is a direct breach of contract and
will eliminate you from participating now, and in the future.

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