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| | Commercial Real
Estate Private Placement Offering Memoranda - The Documentation Your
Project Needs...
Timing for entering the institutional capital markets could not be better and
the creation of commercial real estate offering
memorandums (technically referred to as "memoranda" and not 
"memorandums") for private placement offerings of debt, common equity,
preferred equity and/or hybrids for commercial real estate developers. The
typical private placement offering memorandum is the end result of a tremendous
amount of due diligence documentation, multiple layers of reviews and careful
attention to detail when the capital funding plan's structure is finally decided
upon.
The key issues the client (that's you we hope) has to face are:
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Type of project. If you have a project
with a demonstrable market demand that can have its equity financing come
from a statutory investment entitlement, then you are on the right
road. If not, then we need to consider changing directions. It's
as simple as that.
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Type of security. Convertible hybrids
are currently in vogue. The capital
funding proposal will drive this issue; you must be prepared to
capitalize on the opportunity by having the right securities in your
offering. Talk to a Rainmaker consultant on this issue and we'll be
happy to give you all we have on it. Do we do equity, debt, hybrid or
do we do real estate?
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Due diligence. You have to have all the
due diligence documentation in hand before you go out to the market with
your private placement offering. Due diligence documentation for
commercial real estate development project financings is a core competency
of Rainmaker Marketing Corporation.
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Statutory entitlements. If investors
can obtain their economic benefits by not having to underwrite the real
estate and by not having to underwrite future operations you are in the gold
zone. Tax credits, bonus depreciation expense allowances, grants,
no-interest loans, loan guarantees, loan insurance and direct lending
opportunities will make the difference.
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Continued.
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Do
You Know The Secret?
When it comes to commercial real
estate development finance, it doesn't matter whether you need to raise
$5 million or $50 million, the out-of-pocket costs, advance fees and
project due diligence costs will always require the same relative
investment dollars the promoters have to fund. Do you know what
that amount is? Do you know the Secret? |
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