Our Process

Our Process

Our Process

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Screening

NYMT initially assesses two primary areas:

  1. Location:  physical address and surrounding market area/demographics
  2. Sponsorship: experience and management/ownership presence in the investment location

To the extent those areas are acceptable, NYMT generally looks for the following information to soft quote:

  1. Broker Offering Memo: sales broker package and sponsorship offering memo, when available
  2. Model / Proforma: financial underwriting, preferably in Excel Format
    1. Business Plan: includes capital improvements plan along with upfront reserved capital, when applicable
    2. Sources & Uses: includes senior loan structure
  3. Trailing 12 Month Financials: preferably in Excel format, financials represents on a monthly basis as opposed to aggregated
  4. Rent Roll: preferably in Excel format
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Soft Quote

Based on the analysis from the Screening process, NYMT provides a soft quote that includes business terms outlining the transaction. Generally, business terms mirror ‘Basic Terms’ outlined for a given the Investment Offering

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Term Sheet

Once business terms are agreed upon, NYMT has an initial internal committee to discuss the overall investment.The goal of this committee is two-fold:

  1. Increase Clarity: introduce the deal internally to flush out any potential concerns
  2. Improve Execution: improve the overall execution of the deal during underwriting to avoid re-trading

To the extent that there are no outlying concerns, NYMT prepares a detailed term sheet inclusive of major governance provisions. To begin underwriting, the following must occur:

  1.  Executed Term Sheet: depth of term sheet is ultimately transferred into form governing docs to reduce surprises
  2. Wired Expense Deposit: covers legal, background checks, third party report reliance and travel/underwriting costs
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Underwriting

After receiving the Executed Term Sheet and the Wired Expense Deposit, NYMT begins underwriting. NYMT primarily focuses on the following aspects of the deal:

  1. Site Inspection: meet at the property to assess quality, market and business plan
  2. Background Check: underwrite the controlling interests and significant members in the partnership
  3. Due Diligence: collect and review due diligence.
  4.  Documentation: legal documentation, NYMT has general form documentation that pairs with its Term Sheet
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Closing / Funding

Once underwriting is complete, NYMT has a final credit committee to note any material items that may have surfaced during the Underwriting process.
 
To the extent the credit committee approves the investment, NYMT funds its investment at closing by wiring its net funded amount (investment amount less expenses) in escrow to the deal’s title company.
 
Prior to wiring funds, NYMT provides a detailed settlement statement that outlines any costs incurred during the underwriting process for transparency.
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