When a business transaction, usually involving commercial real estate property, calls for a Special Purpose Entity (SPE) or Independent Director (or independent managers in the case of LLCs) services, make certain you select a company that knows what to do and how to do it.
Why would someone need an independent director?
- The lender is going to require it. Lenders rely on this arrangement to protect their investments.
- Borrowers, who foot the bill for the SPEs and their independent directors or managers, may profit from this requirement because it can give them access to significantly better loan rates.
What are the key characteristics of an independent director?
- Experience:
Directors must be qualified professionals who are able to act with intelligence, reasonableness, and reliability; - Independence:
Directors should have no material ties with any lender, underwriter, bank, insurance company, or securitization administrator. - Staff and Resources:
Borrowers need an organization that can provide independent director services quickly and has qualified professionals available when needed.
Consider RASi for independent director support
- RASi has provided experienced directors/managers in hundreds of transactions.
- RASi staff can turn things around quickly, so clients' deadlines are always met.
- RASi staff responsible for this understand that these transactions are complex and that many pieces often fall into place at the last second.