Rate Cap Advisors | Rate Cap Advisors Offers Expert Guidance Through the Rate Cap Process

Commercial real estate owners and brokers rely on Rate Cap Advisors for our team of specialists, flat fees and a headache-free experience from start to finish. We take care of every detail at a fair price, so you can stay focused on your business.

The RCA Difference:

One Fee: We charge a flat fee of $5,000 on most standard transactions.
Save Time: We guarantee the fastest closings in the industry.
Best Pricing: We bid out each transaction to our extensive network of counterparties to ensure our clients the lowest possible pricing.
Ease of Execution: We ensure complete compliance with all Dodd-Frank requirements, guaranteeing peace of mind and a seamless closing.

To meet Dodd-Frank pre-trade requirements, various documentation will be required. Below please find a partial checklist of required documentation and please begin providing these documents to us at your convenience. Please note although originals are not required, all documents should be submitted on behalf of any entity that is purchasing the cap.

Checklist:

Global Markets Entity Identifier (GMEI, Previously known as LEI or CICI)
W-9 (2018 version is now required by banks for FATCA compliance)
Chart detailing any direct or indirect owners of the rate cap purchasing entities with a 25% or greater ownership interest
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Education for Rate Caps

We have served as a trusted provider of continuing legal education (CLE) and training on the topic of rate caps since 2014. We understand that finding real estate relevant CLE credits can be a challenge, which is why we offer classes in your office, at your convenience. Our standard presentation has been approved for CLE credits for attorneys licensed in many states.

This unique presentation will be tailored to your specific needs as an attorney and your role in the rate cap process. We can present the basics of rate cap or more complex specifics based on your preference and the time allotted.

The free informational presentation covers such topics as:

The rate cap process
Typical rate cap requirements
Closing deliverables
Closing logistics

If you are in need of CLE credit, contact us today, and we'll arrange a visit from one of our experts.

The Newest Service Offered by
AST Defeasance

Rate Cap Advisors is part of an expansive network of partner firms specializing in commercial real estate finance solutions since 2006. The firms' principals have a combined 85 years of commercial real estate finance experience in such fields as defeasance and yield maintenance penalties, interest rate hedging and CMBS surveillance and investment. From our expertise in defeasance and yield maintenance calculations to our innovations in hedging strategies, we take pride in our pursuit of excellence regardless of the service or product. We have saved our clients tens of millions of dollars over the past decade through our creativity and willingness to pursue new avenues to benefit our clients. With a 100% closing track record, Rate Cap Advisors upholds the standard of excellence expected of all our services offered.

FAQ's

What are Rate Caps?
A Rate Cap is a financial instrument generally used by commercial real estate owners on floating rate loans to establish maximum future interest payments. Through a Rate Cap, real estate owners gain cost certainty regardless of market fluctuations. During the agreed upon period if the interest rate on an adjustable rate loan exceeds an agreed upon strike price, the counterparty on the Rate Cap (normally a bank) pays the difference and the borrower simply pays their agreed upon max.

For example, if a Rate Cap has a strike rate of 2%, real estate owners make interest payments up to 2%, with any interest owed above the strike rate paid by the counterparty.

Why choose RCA?
In our role as rate cap facilitator, we will assist you in the bidding and execution of your rate cap by:
- Obtaining the lowest possible premium and transaction costs (with only lender-approved counterparties, when required)
- Facilitating delivery of all required documentation to both cap provider and new lender
- Ensuring complete compliance with all Dodd-Frank requirements
- Ensuring that all parties are ready to close on your targeted closing date

How Does It Work?
In this case, a borrower is looking to hedge against 1 Month LIBOR rising above 1%, 2% or 3%:

Sample Rate Cap Quote

Sample Transaction

Notional Amount:	$25,000,000.00
Index:	1 Month LIBOR
Duration:	3 Years
RCA Fees:	$5,000

Estimated Cap Pricing

1%:	$247,411.98
2%:	$98,120.87
3%:	$40,331.27

*RCA charges a flat fee of $5,000 for the entire consulting process. This fee applies to standard transactions where premiums are under $100k that contains A-/A3 downgrade triggers and does not encompass deal terms such as partial interest periods, index rounding, and non-constant loan balances.

The above information is meant for informational purposes only and additional KYC information may be requested. We are not investment advisers, broker dealers, attorneys or accountants. Any pricing indication is based on market prices as of the time of pricing. Note that market prices constantly fluctuate and therefore the cost of the transaction is subject to change at any time.

We are unable to make any guarantee as to whether the borrower is or will be eligible to purchase an interest rate cap. Actual premium costs you incur may be more or less than preliminary estimates, based upon market conditions and other factors. This estimate was prepared based on information available to us at the time of preparation and is subject to final revisions. Any estimates are provided without representation or warranty of any kind, whether expressed, implied or statutory.

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The RCA Difference:

Checklist:

Who We Work With

Education for Rate Caps

The Newest Service Offered by
AST Defeasance

FAQ's

What are Rate Caps?

Why choose RCA?