Financial Management

RETC strengthens its clients ability to maximize returns by ensuring the they achieve their financial goals in three particular ways. First, we assist clients in obtaining the best possible terms from capital providers. Second, we make sure clients are only required to escrow appropriate amounts for property taxes allowing for as much distributable cash flow as possible. Third, we clearly define payment timings and amounts so that clients pay only when necessary ensuring compliance.

RECAPITALIZATION

Clients request RETC to provide accurate and detailed property tax projections. With this information and back up support, it allows them to negotiate with capital providers and underwriters for better terms due to higher cash flows and coverage ratios. It is not uncommon to unlock 10-20% in extra proceeds or lowering interest rates by a similar amount if lenders agree to RETC projections. At times, RETC has spoken with capital providers (debt and equity) directly providing them with the data for them to be confident in their underwriting.

ESCROW MINIMIZATION

In almost every instance, the timing of when escrow amounts are defined to do not coincide with when tax bills are set. For this reason, escrows amounts can widely vary from the eventual actual amounts due. RETC strives to provide accurate projections to its clients and their lenders to be as accurate as possible in their escrows. Additionally, we work with lenders to release or lower escrowed amounts as quickly as possible once appeals have been achieved.

PAYMENT TIMING

The timing of when property tax payments are due is generally straightforward. At times, however, there are pending appeals or litigation at the time of a payment deadline. RETC helps define when and the amount a client should pay if appeals are not fully resolved. This allows clients to expense as little as possible during the appeal and not have to wait for refunds once appeals are completed.