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Glossary of Terms

 

"TIF" - Tax Increment Financing Plans For Commercial Real Estate New Construction Projects - Continued...

Tax Increment Financing is an economic development program approach based upon:

  1. The assumption that attracting new economic development to a given geographical area will result in higher property tax valuations and collections pertaining thereto.  These future increases in tax revenues (tax increments) are used as collateral to guarantee repayment of bonds issued to support the given economic development program.

  2. Tax Increment Financing usually relies upon the issuance of bonds.  The net proceeds from these bonds are used to develop the projects and programs that are anticipated to result in:

    1. Increases to the tax rolls based upon these developments.  

    2. Increases to the tax rolls based upon economic development that results as a consequence of the TIF plan's enactment and completion.  

    3. Increases in the value of surrounding real property as a result of the economic development.  

  3. In a TIF plan, the municipality that authorized the creation of the new TIF District (the area included within the plan) is not responsible for satisfying the repayment obligations of the bonds beyond the payment of the incrementally increased tax revenues that resulted in the TIF District.

Need more information on how to get started?  Talk to a RMC consultant today and find out all you need to know.

 

Call: 281.537.1200


What's New?

Tired of construction loan rejection letters?  Rainmaker has come up with a whole new way of funding construction that eliminates the developer's reliance upon construction mortgage financing, while creating financial investment leverage greater than 10:1!

All of the information is in our latest white paper.  Click here and download a copy and be prepared to be floored!

Email: consultants@rainmakermarketing.com.  Address: 15519 Dawnbrook Drive, Houston, Texas 77068.  281.537.1200. Open M-F 9 to 5 (CST).

 

About Rainmaker Marketing Corporation...

Rainmaker Marketing Corporation, Inc. is a B2B consulting firm built from the ground up by Clint Lovell on the premise of providing market feasibility studies (hence the name Rainmaker Marketing) to the senior housing development industry for projects seeking FHA/HUD-insured financing.  Rainmaker started business in 1993, though its roots extend back to 1988.  In the intervening years, the depth of services has been enhanced to provide a complete continuum of due diligence documents and consulting services.

Today, Rainmaker has completed literally hundreds upon hundreds of consulting assignments on projects in the housing, health care, retail, commercial office and hospitality industries throughout North America - including projects in 45 of the 50 states, Canada, Mexico and the Caribbean Basin.  The resulting reports and consulting services provided by Rainmaker have resulted in billions of dollars in new development.  Our clients have included publicly-traded companies, privately-held companies, government bodies and not-for-profit organizations.  

When Should You Be Talking To Rainmaker?

If you will be seeking construction financing from a third-party lender (or investor) with whom you do not already enjoy a previous underwriting relationship, then you need to be talking to Rainmaker.  If you have insufficient equity or assets necessary to sustain a construction mortgage financing for a new construction project, then you need to be talking to Rainmaker about the alternatives.  If you have doubts, Rainmaker is the firm to turn to when it's time to deal with them.

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