Hearthstone recognizes that the best investment opportunities frequently demand a quick and decisive response. We make sure Hearthstone builders/developers get this response when they need it. While the first investment with a builder takes about 90 days, the timetable for subsequent investments can be reduced to 45 days or even less in special circumstances. Key milestones in the approval process are shown here.



All new builders and developers must be approved before Hearthstone invests with them. Several members of Hearthstone's management team are involved in the builder selection and approval process. Hearthstone examines the builder's track record, financial condition, trade and credit references and insurance loss history. Approval takes about two weeks.


Once approved, a builder/developer begins submitting projects for consideration. Hearthstone's project approval process is designed to identify suitable investments early and close them rapidly.


The investment officer tours the site, develops a proforma and undertakes other preliminary investigation. A Project Financing Application, which is a brief report summarizing the principle strengths and weaknesses of the project, is submitted to Hearthstone's investment committee for review. Hearthstone's policy is to respond to all Financing Applications within 72 hours of submission.


If the Financing Application is approved, a letter summarizing the terms of the transaction and authorizing Hearthstone to hire third party consultants is issued by Hearthstone. The builder/developer pays a deposit to cover the cost of the consultants.


It ordinarily takes 3 to 4 weeks for the third party consultants to finish their work and for the investment officer to present a final recommendation to Hearthstone's investment committee. The committee meets as needed, usually by telephone, to vote on investments. No further approval is required to fund an acquisition.


Once a project is approved, Hearthstone's in-house legal department shepherds it through to acquisition. Hearthstone's legal department is extremely sensitive to meeting deadlines, and has closed projects less than 48 hours after approval.