SHERBERT CONSULTING, INC.
Sherbert Consulting, Inc. provides high-level service for the real estate developer aiming to take historic rehabilitation, affordable housing, new markets tax credit, or opportunity zone projects from the starting blocks to the finish line. This process can often be confusing and ineffective, so it pays to have expertise on your side.
Our firm structures and closes as much as $1.5 billion of real estate tax credit projects annually across the country. Through these transactions, we have worked with many of the most significant players in the industry – from investors to lenders to attorneys. Our team strives to be a real asset to the developer by designing creative solutions to the unique obstacles that arise in each project. From the initial stages of understanding the project’s potential and bringing the deal into shape, to preparing comprehensive projections for the tax credit investment, to working with investors and lenders to balance the needs of each party, Sherbert Consulting, Inc. seeks to pave the way for the developer to a more efficient closing. After closing, we are able to provide a smooth transition to our partner CPA firm, Sherbert CPA, PC.
With decades of experience in the industry, Sherbert Consulting, Inc. has worked with all of the major tax credit investors. We can help identify the potential economic benefits of your project, along with investors that may be interested in partnering with you. We will work with you through term sheet negotiation, structuring, and documenting the deal with the tax credit investor.
Tax-advantaged real estate projects can be confusing or cumbersome from a number of perspectives: dealing with multiple incentives and applicable rules/regulations; working with multiple investors and lenders, along with their counsel, to effectively structure the transaction; ensuring that all due diligence is in proper order so as to limit potential roadblocks, etc. Sherbert Consulting, Inc. can provide guidance in navigating all of these areas and more. Our services will be tailored to your project.
Whether it’s historic rehabilitation, affordable housing, new markets, or opportunity zones, solid financial projections are essential to a clean closing process for your transaction. Initially, Sherbert Consulting, Inc. works with the developer to refine the development budget and operating pro forma. We make sure to account for any specific requirements of the applicable tax program and calculate an initial estimate for the credit amount and other potential benefits. As we review due diligence, we will ensure the projections are used as a road map for various parties involved in the transaction – lenders, investors, attorneys, etc. The projections will be updated for the agreed-upon structure and will ultimately be used to arrive at projected credit and equity amounts to be specified in the operating agreement and other investment documents. After closing, Sherbert Consulting, Inc. is also able to update the projections as necessary to account for actual results in terms of development and operations. Furthermore, if changes to the structure are warranted, the projections may also be updated to allow for a new take on the project. Finally, we can analyze the potential tax and cash consequences of a partner’s exit from the transaction.
In many tax credit deals, a large portion of the tax credit investor’s funds are not available until after completion of the project. Sherbert Consulting, Inc. works closely with a select few lenders that are able to bridge the investor’s equity that is committed for after completion. We are also able to bridge other credit-rated takeouts. We can package your deal for a streamlined closing, allowing the project to utilize the bridge dollars during the construction period. Sherbert Consulting, Inc. is also able to coordinate monthly construction draws if desired.
Having worked through hundreds of tax credit transactions, Sherbert Consulting, Inc. knows the due diligence that is typically needed, along with potential roadblocks that may arise during the investor’s or the lender’s review process. We work with you upfront on the due diligence, identifying documents that may need to be revised or deal specifics that may be a concern to some parties. Our goal is to present the investor and lender with a due diligence package that is as clean as possible. We utilize an online system to maintain your due diligence and are able to give access to those who need it as you deem necessary. The documents are kept so that approved parties can refer to them during the closing process and after.
With decades of experience in the industry, Sherbert Consulting, Inc. has worked with a number of national, regional, and local lenders that are interested in providing construction/permanent financing on real estate projects. We will connect you to the right banks for consideration of your project and will work with you through term sheet negotiation, structuring, and documenting the deal with the lender. Sherbert Consulting, Inc. is also able to coordinate monthly construction draws if desired.