Loan Types
Land Acquisition & Development Capital
Land Banking
Inventory Financing
Bridge Financing
Equity Financing
Our Funding Parameters
Debt
Term: Up to 3 years + Ext.
Security: First Mortgage (Non-Recourse)
Up to 90% LTC / 80% LTV
Deal Size: $3M+
Flexible Prepayment & Repayment Options
Land Banking
Term: Up to 3 years + Ext.
Up to 85% LTC / 80% LTV
Deal Size: $5M+
Equity
Term: 3-7 years
Deal Size: $5M+
Target Returns: Min. of 1.5x multiple & 15% IRR
Lending Activities
First & Second Mortgages and Debt Financing
Terra Firma provides all types of debt including first and second mortgages. We typically look to invest in the following opportunities:
- Land ready for development
- First and Second Mortgages for residential, commercial and retail properties
- Short term bridge lending and special situation facilities
Equity Financing
Terra Firma Capital Corporation provides equity financing to experienced residential and commercial developers. We typically provide 50% – 70% of the project’s required equity while the development partner manages the day to day operations. Terms of the joint venture will vary on a deal by deal basis and can be customized to suit the needs of the developer.
Products
Terra Firma Capital Corporation tailors each financing to suit the needs of the individual developer by offering the following products:
- Land Acquisition Loans
- Land Acquisition and Development Loans
- Land Acquisition and Development and Construction Loans (Low Rise Residential)
- Project Financing for Multi Family / Condominium / Mixed Use / Commercial
- Lot Inventory / Land Bank Loans
- High Leverage Participating Loans – (Residential Land Development)
- Equity Take Out Loans
Investment Criteria
Typical investment criteria are as follows:
- Non-Recourse Loans available
- First or Second Mortgages
- Loan to cost up to 85%
- Defined exit strategy
- Up to five year terms
- Typical loan size from $3,000,000 to $20,000,000
- Properties located in Canada and the United States