Constantine Capital, Inc.
Our Mission Statement
It is the mission of Constantine Capital Inc. (CCI) to assist chapters of the Sigma Chi International Fraternity in providing adequate housing to its members by making available and managing existing loan funds from the General Fraternity. CCI will also explore and seek out new sources of capital that may also be available for this same purpose. It is also the responsibility of CCI to preserve all existing funds under its purview.
The tremendous need for adequate housing of Sigma Chi undergraduate brothers motivated the Fraternity to support the granting of loans to meet this challenge. Utilizing the General Fraternity and the Foundation's endowments, funding was made available for this worthy cause. As the Fraternity grew and those needs became larger and larger, the Board of Grand Trustees developed the concept of a 'Sigma Chi mortgage bank,' and Constantine Capital Inc. (CCI) was established in 1990 to administer the Fraternity's mortgage investments. CCI is responsible to the General Fraternity for providing an adequate return on its investment, and for administering funds in a proper fiduciary manner.
As with almost all functions of the Fraternity, CCI relies on strong volunteer support to ensure the success of the organization. CCI is not only looking for ways to invest the endowment funds of the Fraternity, but is also seeking alternative sources of capital to make available to our chapters. All brothers that pay dues, are Life Loyal members and/or support the Fraternity's scholarship initiatives have a stake in this investment. CCI provides Sigma Chi with another way to support our chapters on a local basis and to further benefit the ideals of our brotherhood.
Constantine Capital Inc. (CCI) provides fixed-rate, short-term or gap loans to house corporations of chapters of Sigma Chi that are in good standing with the General Fraternity. All loans will be for the purpose of purchasing, constructing, rehabilitating, refinancing or the guaranty of real estate. These loans will be secured primarily by a first or second lien on real property. CCI encourages those house corporations seeking to fund the "GAP' between a conventional bank loan and their equity in the property to contact CCI. CCI will also consider a guaranty of other lenders debt on a limited basis, depending on individual house corporation circumstances. Whenever possible, CCI funds are combined with local conventional bank funds to maximize CCI's leverage to maximize the Fraternity's resources and provide opportunities of chapter ownership to as many Sigma Chi chapters as possible.
Individual chapter needs are discussed by CCI and the related house corporation to determine the best course of action for each chapter. Applications are then processed — usually simultaneously with the bank application — and reviewed by CCI's board of directors. Closings are coordinated with other financing arrangements and facilitated by counsel from the local area where applicable. CCI, along with the Grand Trustees, also provides technical assistance to house corporations on structuring loans and tapping potential sources of equity and/or additional debt.
All loans funded by CCI must meet the basic criteria of sound lending practices outlined by the Fraternity. Funding decisions are approved by CCI's board of directors, composed of volunteer real estate and financing professionals from Sigma Chi's alumni ranks. CCI imposes the following requirements for the life of the loan on all of the projects that it funds:
- The house corporation must be fully incorporated under the laws of the appropriate state and in good standing with the Secretary of State;
- The active chapter must be in full support of the planned project and also in good standing with its university and the General Fraternity;
- Applicable insurance must meet or exceed standards outlined by the General Fraternity's requirements;
- The house corporation must have the means to adequately support the debt service requirement of the total loan request;
- Local building regulations, title conditions, environmental and appraisal reports must be acceptable to CCI;
- Personal guaranty by local or affiliated alumni of limited minimal amount of each loan is required by CCI and
- The house corporation must be active, hold regular meetings and retain active involvement of local alumni and its respective Grand Trustee
These requirements are not all-inclusive and are meant to be a guideline to those parties interested in obtaining financing with CCI.
- Term: Maximum term of five years for all loans made by CCI. Amortization may be for as long as 15 to 30 years, depending on circumstances.
- Interest Rate/Margins: Fixed-rate loans tied to the applicable Treasury Index plus a margin determined by market conditions, risk assessment and cost of funds to CCI from third party funding sources.
- Loan to Value Ratio: Maximum project debt of 80 percent of collateral value as determined by an acceptable appraisal.
- Debt Service Coverage: Must provide, at minimum, positive debt coverage. (Ratio may be higher if required by other lenders.)
- Security: First or second deed of trust (mortgage or equivalent) or first leasehold mortgage.
- Maximum Loan: $250,000.00
Loan Application and Inquiries
Please feel free to download the loan application here. For more information on CCI's lending program, or to obtain an application package please contact Order of Constantine Sig and CCI chairman Ed Rammrath, INDIANA (PENNSYLVANIA) 1979.