	Your vision is our mission...

Commercial Real Estate Loans - Continued...

Commercial real estate loans come in a variety of offerings:

	Development & Construction Loans. Loans for the construction and development of income-producing properties. Generally, these loans require personal recourse because lenders still do not understand construction risk mitigation (and probably never will become sophisticated enough to even bother to try) and provide between 60% to 80% of the total development budget requirements.
	Acquisition Loans. Loans for the acquisition or income-producing properties. Generally, these are credit-based loans that require hefty equity investment to obtain and are the most competitively priced loans in the commercial real estate market.
	Acquisition & Rehab Loans. Loans that provide funds for both the acquisition of an existing income-producing property and the construction and rehabilitation operations associated with upgrading the property. Generally, these loans require personal recourse during construction (HUD insured loans being the exception), and provide between 65% to 80% of total development costs (including acquisition of the existing property).
	Mezzanine Loans. Generally, loans that are subordinated to construction loans and provide working capital and/or other forms of capitalization gap financing. These loans typically require an equity slice or option be granted to the lender, but are usually well worth it if there is a defined exit strategy for paying off the loan during the term of construction. Interest rates are typically double the going rate of construction money.
	Hard Money Loans. Loans that provide for property acquisition and/or construction based upon your ability to pay hefty fees and provide personal recourse in the event the program doesn't work out. Hard money lenders fill the void associated with underwriting time - commitments are produced quickly (usually a few days) and loans close very quickly (usually 15 days or less). This is quasi-equity in that the exit fees and yield maintenance fees are stiff, but you end up with no long-term capital partners when you put the deal together properly. Be prepared: there are many shady hard money lenders out there who have no problem in using the law to take full advantage of you.
	Escrow Loans. Loans provided for the sole purpose of gaining site control of a property while feasibility period inspections are undertaken. The escrow lender never places capital "at-risk" and the value of these loans are incalculable to the developer who is highly leveraged and is seeking to capitalize on their vision by "borrowing" against the future so they gain the time necessary to obtain the balance of the required capital funding so the project can move forward.

To learn more about these financings, you should contact Rainmaker's offices today.

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 high-LTV construction mortgage financings, while creating financial investment leverage greater than 10:1 for the promoters!

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.