Commercial Real Estate Acquisitions & Commercial Loan Costs Escrow Financing Program

Do you need help with front-end financing of commercial real estate acquisitions escrow loans or have a commercial loan closing costs escrow loan need?  Perhaps Rainmaker can help you fill your temporary funding gaps with an escrow funding program that provides you with the credit you need to complete your commercial real estate acquisition financing or commercial loan closing by providing you with the escrow funding loans you need to act quickly when opportunity arises.  Opportunity knocks only very briefly in commercial real estate development before it moves on and this program is designed to help you answer the call of entrepreneurs who are seeking to create the necessary financial investment leverage that allows them to realize their ambitions.

This program may be used for commercial real estate property acquisitions that include:

• Hotels, motels, and other lodging and hospitality properties including food service properties; and

• Commercial office space, flex space, warehousing space, R&D space and related properties; and

• Retail properties of all types; and

• Factories and manufacturing facilities of all types; and

• Multifamily housing properties including all classes of senior housing properties; and

• Raw land and land that is not as yet entitled/zoned for the proposed use.

The commercial loan and/or commercial mortgage closing costs program fills your funding gap needs on a temporary basis to give you the time you need to complete your capitalization activities and close your loan out with maximized financial leverage.  Funds can be used for escrowing refundable points and fees associated with your loan that are subject to certain pre-approved conditions.

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.

Example:

You wish to purchase a piece of commercial property.  The purchase price is $10,000,000 and you need 90 days to put together your financing, but your funds are limited.  The purchase agreement specifies a good faith deposit of one percent (1.0%), or $100,000 is required upon your execution of the contract.  The funds are to be held at the title company and are refundable if you cancel the contract for any reason for a period of 90 days, after which, the funds are non-refundable.  You then have 90 days to close from the expiration of the 90 day evaluation/feasibility period to close out the transaction.  If you pay the $100,000 out of your own fund, you won't have enough for your required due diligence documents, funding costs, and third-party reports necessary to close the transaction.

Subject to our conditions, we will fund the $100,000 purchase 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, loan submittals, etc. and "buys" you 90 days to get your funding together and replace our $100,000 escrow advance.  If you do not replace it by Day 89 of the feasibility/due diligence 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 purchase escrow, we are paid an additional $100,000 success fee inter alia with the closing of the purchase escrow, via an irrevocable escrow instruction to the escrow agent - case closed.

It starts with you, so don't hesitate to learn more about how we can help you.  Call us today and start getting the answers you need to realize your future success potential today.

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 

Copyright © 2004 - 2008 Rainmaker Marketing Corporation.  All rights reserved.