A brand new approach for real estate developers
Hageman Capital takes a new approach to TIF and can make a project financially viable. By selling your TIF bond, you can convert it into immediate capital, enhancing your project’s returns while reducing contributed equity. Utilize our free online tool to estimate your TIF’s value based on your development specifications today.
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Cover project costs and reduce contributed equity
To even purchase land and begin construction, you need to know if your planned development will generate ideal returns. That becomes difficult in an environment with higher construction costs, land costs, interest rates and municipal regulations. Access to tax increment financing adds a much needed capital infusion to make projects feasible, but why monetize your incentives for a lower value?
Selling your TIF with Hageman Capital generates the most value for your given incentive. We estimate bond values based on the full term of your incentive, and evaluate the purchase price based on real time treasury rates. We partner with you to create the an optimal bond structure based on your incentive, ensuring maximum TIF proceeds. Our process produces millions in direct capital at loan closing.
Alternative TIF monetization methods may result in lower upfront proceeds
At Hageman Capital, we help communities succeed through new developments. And new developments are only viable when the financial metrics make sense for project stakeholders. Our process ensures developers get the most value for TIF to help bridge the gap of planned projects. Other monetization methods can source capital from your TIF but nowhere near the proceeds from selling.
Up front TIF bond monetization is rare
Allowing a developer to capture incremental taxes is a risk that municipalities balance with the value a community can receive with a new project. Normally these taxes goes toward other municipal uses and improvements, thus the proposed development must generate additional value and future taxes for the community, above and beyond the initial value of the TIF incentives. To reduce exposure to a municipality’s credit, most TIF bonds are issued as developer backed, and pay-as-you-go.
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Optimize TIF structures for more capital at construction loan closing
Selling your TIF is the best solution for making a project feasible, and improving returns. Being able to monetize TIF upfront means less debt and lower contributed equity. To get the most value out of your incentive, you’ll need structuring expertise. Hageman Capital is your partner to navigate a variety of TIF issues, contact us today and get started.