Ownership Transfer

Fifth Point Properties has been there for several chapters where the house corporation has made the decision that an ownership transfer was necessary. Our goal is to facilitate the transfer as painlessly as possible, while keeping the best interest of the chapter and alumni in mind. While the “ownership” of the property may not be in the hands of the local house corporation, it is our philosophy to keep the chapter and alumni involved in the planning and management of the property. It is your chapter home, not Fifth Point’s!

The basic process usually involves:

• Fifth Point Properties acquires the property, typically for the cost of outstanding debt, plus transaction costs. In most cases, this allows for an immediate infusion of capital for repairs and improvements to the physical structure.
• The property is placed into a subsidiary LLC of Fifth Point Properties, with an opportunity for board participation by a nominee of the local alumni entity/house corporation. This provides an opportunity for continued participation by alumni in preserving housing for the collegiate chapter.

To see if Fifth Point Properties would be a good partner for your chapter and house corporation, contact us via e-mail or by telephone at 540.463.1869.

Our Properties

DeLand, Florida (Stetson University)

Fifth Point acquired our Delta Mu Chapter home in 2006. Immediately following the acquistion we worked to secure the house and to handle several deferred maintenance issues. After the property was initially stabilized we have completed a total renovation of the upstairs bathroom. A complete renovation of the property is being planned currently.

East Lansing, Michigan (Michigan State University)

Fifth Point acquired the Epsilon Rho Chapter home in 2005. The chapter home has since under gone a significant remodel of the bathrooms and the formal living area. The electrical system has been improved, along with exterior improvements.

Mankato, Minnesota (University of Minnesota–Mankato)

Fifth Point acquired this property in 2007 for the Lambda Delta Chapter. This marks the first time that Fifth Point Properties has acquired a property that was not previously owned by the chapter.

Norman, Oklahoma (University of Oklahoma)

Fifth Point closed the acquition of the Delta Epsilon Chapter home in February 2009.

Tallahassee, Florida (Florida State University)

FFifth Point acquired the property in July 2008 for the Zeta Zeta Chapter. This marks the second time Fifth Point has acquired a property that was not previously owned by the chapter.

For more information on how Fifth Point Properties can help your chapter either through an ownership transfer or our property management services, please contact us via e-mail or by telephone at 540.463.1869.

Borrower Assistance

One of the keys to successful chapter housing is finding the right financing for the purchase, construction, and/or renovation of chapter properties. With Fifth Point's expertise in fraternity housing and our contacts with financial institutions, we can be a great resource to local house corporations seeking to finance the purchase, construction, and/or renovation of chapter properties or for the refinancing of existing debt.

Acquiring commercial financing for Greek housing has historically been a long and difficult process. This is mainly due to the small market and commercial banks not being familiar with Greek housing. With Fifth Point Properties experience we can develop a customized loan application proposal and help to educate bankers on lending to Greek organizations. For more information, please contact us via e-mail or by telephone at 540.463.1869.

Loans

On a funds-available basis, Fifth Point can provide direct debt financing to local house corporations. Each debt financing opportunity is evaluated on an individual basis with respect to approval, as well as rate pricing.

Below is a basis overview of the real estate loan policies of Fifth Point:

Borrower:	Must be an incorporated entity in good standing
Loan Amount:	Subject to available funds
Security:	Mortgage/Deed of Trust (1st or 2nd) or Leasehold Deed of Trust with Guarantee from Lessee
Term:	Five (5) years
Amortization:	Not to exceed twenty (20) years
Loan to Value Ratio (LTV):	Not to exceed eighty percent (80%) of appraised value
Debt Coverage Ratio (DCR):	1.25 (Net Operating Income/Annual Debt Service)
Payment:	Monthly or Quarterly
Application Fee:	$250.00
Commitment Fee:	Greater of $500.00 or 1% of Loan Amount
Origination Fee:	Greater of $1,000.00 or 2% of Loan Amount
Closing Costs:	Borrower pays all closing costs

The application process for loans includes the following:

• Completed Loan Application (fill-in form)  
• Application fee of $250.00
• Cover letter including amount of loan request and narrative description of the project
• Appraisal (must be completed within past 12 months) with reliance letter from appraiser
• Articles of Incorporation and Bylaws
• Certificate of corporation’s good standing
• Financial statements for past three years
• Budget for the current year and five-year projections

For more information about Fifth Point's loan program and to see how it may benefit your house corporation, please contact us via e-mail or by telephone at 540.463.1869.