Heat Map by Assessment
Contract Process
- A potential acquisition is identified through pipeline research, existing relationships, or direct contact from the seller.
- Information is gathered regarding the project (location, builder, assessment amount/term, home prices, absorption, etc.)
- Relevant information is entered into S&W’s proprietary financial model which aids in the determination of the offer price.
- The investment committee meets to discuss the potential acquisition, any history we have with the seller and/or builder, the performance of similarly situated projects, the market in which the project is located and a determination is made whether to pursue the opportunity.
- A term sheet is issued at the determined price with closings on a semi-annual or annual basis to commence upon a minimum number of dwelling unit having been sold to the homeowner.
- The contract is negotiated and executed.
- The timing between contract execution and the closing can vary from immediate to 18-24 months.
- The contracts typically do not include more than nominal consideration and nominal liquidated damages upon default, if any at all.