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Commercial Loan Costs Escrow Financing Program

If you are looking for help with front-end financing of a commercial loan closing costs escrow loan transaction, then Rainmaker may be a valuable resource in helping you close your loan out with maximized financial leverage.  In today's ultra-competitive business operating environment, the opportunity to close a commercial loan escrow can be a harrowing task, especially if you don't have immediate access to the funds necessary to pay the refundable points and fees that commercial lenders require as a condition of application and/or production of a loan commitment.  

This program may be used for:

• All commercial mortgage loan transactions; and/or

• Commercial loans closed thru a title company; and/or

• Institutional structured financings.

Program Terms, Conditions & Limitations

This commercial finance program is available based upon the following fee considerations:

• The initial fee is equal to 15% of the amount of the funds placed in escrow on behalf of the client.  This is accomplished thru the title company with a simple escrow instruction that releases the initial 15% fee and instructs the title company to wire the funds to the nominated account upon receipt by the title company of the funds for the escrow funding.

• Each 90 day period (or part thereof) requires a payment of 15% of the amount of funds advanced on behalf of the client.  So, if the client extends their contract feasibility/soft period beyond the 90 day limit, then an additional 15% initial fee payment will be required.

• If the escrow closes (loan funded and/or purchase contract closed out), then the payment of a fee equal to 100% of the funds advanced is due and payable at closing to the nominated account.  This is accomplished via an irrevocable escrow instruction served on the title company by the client upfront.

The conditions and limitations of the program are:

• The maximum amount of funds currently available changes, so you should check with us.  Currently the maximum amount of funds available for a given transaction is $500,000 (USD).

• All transaction documentation is subject our sole approval.

• The processing time for a transaction is 10 days.

• There are no upfront fees.

• Funds are only made available to satisfy an escrow obligation that is refundable.  No funds are provided on an at-risk basis.  This means:

  • For commercial loans, we will only fund refundable points and fees that are placed in escrow with the title company - and not transmitted into the account of the lender.

  • For commercial real estate acquisitions, we will only fund purchase escrows with the title company for the period of time that funds are refundable as specified in the purchase agreement.

• If the funds advanced are not replaced by the end of the feasibility/soft period, the transaction will be terminated and the funds returned to the nominated account and not the client's account (thus providing the required exit strategy mechanism that allows the funds to be advanced on a risk-free basis).

Example:

You need to obtain a $10,000,000 commercial loan for your company.  The term sheet provides you with 90 days to complete the application process required for closing, but your funds are limited.  The term sheet specifies that a refundable fee equal to one percent (1.0%) of the loan (or $100,000) is required upon your execution of the term sheet.  The funds are to be held at the title company and are refundable if the loan is not approved and accepted by both parties, for any reason, within a period of 90 days, after which, the funds are non-refundable if the loan is accepted.  You then have 30 days to close from the expiration of the 90 day application period to close out the loan transaction.  If you pay the $100,000 out of your own fund, you won't have enough for your required due diligence documents, studies, and third-party reports necessary to close on the loan.

Subject to our conditions, we will fund the $100,000 escrow and you pay $15,000 for us having done you this service.  This frees up $85,000 for you to use on the other necessary reports, studies, designs, etc. and "buys" you 90 days to get your act together and replace our $100,000 escrow advance.  If you do not replace it by Day 89 of the application period, then we terminate the agreement and receive back the $100,000 - case closed.  If you do get your funding lined up by Day 89, you wire us the sum of $100,000 and you move forward.  At the closing of the loan escrow, we are paid an additional $100,000 success fee inter alia with the closing of the loan escrow, via an irrevocable escrow instruction to the escrow agent - case closed.  Contact us today to learn more about what we can do together - you and Rainmaker Marketing Corporation.  Sound like a plan to you?

Contact Information

Our business hours are from 9:00 a.m. to 5:00 p.m. Monday thru Friday (CST)

Telephone:

281-537-1200

Postal address:

15519 Dawnbrook Drive, Houston, Texas 77068

Electronic mail:

General Information & Consulting Queries: clint@rainmakermarketing.com 

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