AltosGroups.com

Offices in Florida, Mexico, London, Costa Rica, & Panama

Email: Info@AltosGroups.com Toll Free: 888.962.5867 (888-96Altos)

Funding pioneering developments in real estate

AltosGroups.com

PA G E T W O

As a financial broker, Solutions submitted projects to various funding programs.

It opened its first direct-funding program in 2005, focusing on real estate resort

construction and development, as well as renewable energy in Costa Rica, Panama and

Mexico. Expanding to the Caribbean in 2008 and the USA in 2012, our growth, focus

on specific sectors/geography, and increasing ability to fund generated the new brand—

AltosGroups.

From the start, Altos has focused on the commercial real estate and renewable energy

sectors. Our programs are innovative and competitive. Decisions are made by a team

with real world development, management, operations and construction experience

supported by the financial resources to evaluate, approve and fund projects.

C A N A D A

U N I T E D S T A T E S

M E X I C O

C A R I B B E A N

C E N T R A L A M E R I C A

O T H E R L O C A T I O N SP R O J E C T B Y P R O J E C T

A L T O S G E O G R A P H I C F O C U S

How We Started

AltosGroups is the outcome of a process that began in 2001 when Solutions

Project Funding, SA, was formed to fund construction and development real

estate projects in Costa Rica.

PA G E T H R E E

Altos has focused on the

Commercial Real Estate and Renewable Energy Sectors

We fund projects in sectors including resort, hospitality, multi-family, office, retail,

ILF/ALF senior housing, student housing, casino, marina, medical, sports and

entertainment-themed projects. Under internal groups, we fund programs for

investment-graded clients in the hospitality, sports and resort sectors.

Programs include senior debt and joint ventures, for both real estate and renewable

energy, under the guidelines available on our website at AltosGroups.com. We also

fund corporate and individual programs to refinance existing cash-flow real estate or

energy projects, acquire existing cash-flow projects, or build new projects.

Our primary project territory includes North America, Central America and the

Caribbean. However, we accept hospitality and sports sector projects globally.

Altos funds projects that meet specific criteria described in our funding

guidelines. We never fund 100% loan to costs under any conditions and

always require a cash-down payment at closing.

Our funding process begins with our submission form, which gives us a

“snapshot” of the project. If it meets our guidelines, calls and meetings are

scheduled to get full details on the project and the borrower. Then we issue a

proposal that outlines funding options, our underwriting process, and a step-

by-step process to closing.

Once we and our client agree on a basic structure, the underwriting process

begins to verify the borrower and project, as well as timing and location. This

process includes:

The underwriting process ends with site inspections, executing an LOI with

conditions to close, and eventually, a final commitment to fund. Closing is

scheduled, and the project commences.

• Business plans

• Projections for cash flow and

construction

• Construction, management, debt

service and exit strategies

• Advertising and marketing

• Architectural and engineering

schematics

• Environmental studies

• Cost control parameters

• Entitlements

• Loan-to-costs and loan-to-value

PA G E F I V EPA G E F O U R

What We Do

Our reach

extendsglobally

We look at deals that are fully approved and “shovel ready” or will be in 90 days from closing. Documentation is the key, and verification is the

rule. Your ability to supply the documents needed for underwriting, and the quality of those documents will control the time needed to approve and

close. Our funding range starts at U.S. $20 million and goes up to whatever is required by a qualified developer on an approved project—in one stage

or multiple phases, in large mixed-use master plans. Smaller amounts are considered case by case.

We focus on all commercial income-producing sectors and will also fund end-unit buyer mortgages in Central America and Caribbean joint-venture

resort projects. We have funded mixed-use retail, office, hospitality, assisted living, medical tourism and offshore facilities, multi-family, mixed-use

resorts, condos, hotels, casinos, marinas, golf and beach clubs, and more. We typically do not fund pure residential projects in the U.S.

We have multiple working relationships with hotel flags, development firms, general contractors and management firms. We can assist you with

architectural, engineering, feasibility, master planning and design, as well as legal and inspection services, to name a few.

REAL ESTATE PROGRAMS

We ask ourselves, “Is this the right developer/borrower? Do they have the right plan,

architecture, location, strategies and background to build and operate a great project?”

We fund:

• Projects with a one-time close, construction/perm loan for projects to be built

• Refinancing of existing real estate with positive cash flow

• Acquisition of existing real estate with positive cash flow

• Straight debt and joint venture programs

General guidelines vary, and the funding proposal lists all requirements, costs, terms and conditions.

Our program offers:

PA G E S E V E NPA G E S I X

Construction Interest – Interest

typically accrues through the

construction process and is added to the

total draws taken. Borrower savings can

be 4–6% over institutional lenders.

Term and Rate – Term is matched to

the borrower holding strategy whenever

possible. Rates may be locked in and

fixed or variable. You will find us

aggressive in both.

Loan-to-Cost – Higher than most

institutional lenders. We calculate it

on a project-by-project basis, with

options for both straight debt and joint

venture. Joint ventures are reserved for

the best of the best projects, usually

with extended terms, reduced interest

and reduced down payments.

Underwriting – Common sense

approach focusing on the project, the

plan and the end goal, not strictly on

financial formulas used by banks.

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Sovereign Capital

Our focus is on counties, cities, states and nations that are too small for

Wall Street, but too big for block grants and other subsidy programs.

Schools, toll roads, harbors, refining, transportation, medical,

redevelopment, energy and infrastructure needs can be funded by Altos

and funding partners that specialize in sovereign debt.

Programs offered are based on the investment rating of the sovereign,

the term and payment provisions of the contracts or leases in place, the

technology, logistics, engineering and environmental requirements, and

the form of guarantee offered by the sovereign.

Bonds

Bond programs are available for most sectors and locations in the U.S.A,

on income producing assets and projects. Bond markets are highly

regulated so it takes longer for underwriting. Programs combine Altos

funding with bond underwriters and institutional firms.

Bonds can be used to buy, refinance or build most types of income-

producing assets. Your ability to utilize bonds will depend on the amount,

strength and verification of income flow as well as the terms behind it,

borrower/firm credit rating, and bond market fluctuation.

PA G E N I N EPA G E E I G H T

RENEWABLE ENERGY PROGRAM

• Projects to be built, refinancing and acquisition of existing projects in positive cash flow from

U.S. $20 million up to U.S. $750 million with larger projects case by case

• Sectors include any renewable source such as wind, solar, hydro, waste-to-energy and biofuels

CORPORATE, SOVEREIGN & BOND PROGRAMS

Corporate Capital

Corporations require funding for many reasons, including expansion, new product marketing, acquisitions, buying

the competitor and many others. AltosGroups can bring your company to the capital markets in several ways,

and we have the verified funding programs for the underwriting, issuance and successful sale of corporate bonds,

capital funding against your corporate stock, or traditional project funding for fixed assets, new facilities, renovation

and expansion.

The funding available for your energy project will depend greatly on:

• The type and term of your PPA or offtake agreement, minimum monthly

income generated, investment grade of the off-taker, loan-to-total costs,

feedstock supply agreements, location and risk factors based on geography,

technology and legislation

• Verifiable monthly income from operations, term and type of offtake

agreements in hand, and verifiable cashflow history

We perform processing and underwriting in-house with contract employees and outsource

budget, cost verification, appraisals and feasibility studies to third-party professional firms.

And of course, we only work with top legal and banking institutions on every proposal.

Altos is a hybrid firm, combining the flexibility of private equity with the structure and market presence of a hedge fund. We evaluate projects on:

How We Do It

Using our funds and lines of credit, or combining our funds with other

corresponding programs or joint ventures with our equity, AltosGroups is the

check writer.

PA G E E L E V E NPA G E T E N

Equity invested prior to funding

Borrower ability and experience

Liquidity, down payment and net worth

Permits and approvals

A convincing business plan, product and documentation for the local economy, price point substantiation and other relevant factors

The credentials of the architect, engineers and management involved

Inspections, verifications and draw schedules

Strategies for construction, management, marketing, sales and exit

Full location analysis, value and site inspections with third-party verifications

Proper structure for the location, mortgage, trust or SPV

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We are very aggressive in rate and term and require lower down

payments than institutional lenders or banks.

Debt Programs

As a direct fund, we often receive 50 to 100 projects per month, and

only the best of the best will receive straight debt offers to fund. You must

demonstrate that your project is carefully planned, conceived, and that you

have the confidence to have invested your own funds prior. All funding programs

require a cash down payment at closing by the borrower or third-party investor

arranged by the borrower or Altos. We do not fund 100% and most debt programs

will fund a maximum of 60% to 80% loan to costs.

Joint Ventures

Funding via joint venture is going to require, in most cases, your ability to prove staying

power to the new funding partner. A lender funding your project will require you to

demonstrate financial reserves or ability to complete the project in the event costs increase or

sales decrease from the projections you provide. As your joint venture partner, Altos will fund

from 75% to 90% loan to costs. Joint venture programs typically extend the term of the loan,

reduce or eliminate interest, and—in international mixed-use resorts—Altos will fund end-unit

buyer mortgages for condominiums, homes, vacation ownership and others.

Developer Programs

For qualified developers with a group of projects, now or over the next two to five years, Altos can set

up a line of credit based on those projects, your financial ability, and our programs, in both debt or joint

ventures. Draw schedules that include soft costs, land deposits, zoning, architectural, engineering and other

criteria are available to highly qualified partners. Developers, general contractors, manufacturers and others

use this program to develop in the assisted living, mixed-use resort/entertainment, hospitality and renewable

energy sectors, end-unit buyer mortgages for condominiums, homes, vacation ownership and others.

Our Direct Fundingprocess, in brief:

P R O J E C T S U B M I S S I O N

Borrowers fill out a submission form detailing the project. This “snapshot” will indicate if it

meets general guidelines.

F U N D I N G P R O P O S A L

This is the first document we issue to the borrower. This is a non-binding proposal that

details one or more funding programs we believe the project qualifies for. It is not an

offer, LOI or approval.

S I T E I N S P E C T I O N

Once the borrower provides the underwriting documents listed in the funding

proposal, our team works through the underwriting. We require a site

inspection with the borrower present.

L E T T E R O F I N T E N T ( L O I )

Assuming no material issues on the site inspection, we will issue an

LOI with intent to fund.

F I N A L A P P R O v A L A N D C L O S I N G

Your down payment will either go into escrow with

AltosGroups or into an attorney-controlled escrow account

created for your project. Draws are disbursed on monthly

or quarterly schedules.

F U N D I N G P R O C E S S

Your down payment is held in escrow and is the last

funds going into the project, following the Altos

construction loan.

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PA G E T H I R T E E NPA G E T W E LV E

Our main entity, and your eventual lender or joint

venture partner, combining our programs and sectors

under one brand.

Our source of funds, a hybrid structure combining the

flexibility of private equity/investment banking with a

regulated hedge fund focusing on real estate construction

and development as well as renewable energy projects.

Focusing on both boutique and flag hotels, and

concentrating on our nSports Hotel & Fieldhouse Flag,

investment grade Flag development owned by Altos and

managed by global flag operators, and individual flag or

boutique sites for clients.

Focus: Hotels, golf, vacation rental and mixed-use

leisure properties and oceanfront resorts.

Focusing on assisted living, independent senior living

and memory care projects nationwide.

Groups

PA G E F O U R T E E N

PA G E T W O

AltosGroups.com

Offices in Florida, Mexico, London, Costa Rica, & Panama

Email: Info@AltosGroups.com Toll Free: 888.962.5867 (888-96Altos)

Funding pioneering developments in real estate

AltosGroups.com