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| | Commercial Real
Estate Syndicate Management Services...
If
you are seeking capital financing for a commercial income-producing property
development (new construction)  project, then you should be talking to Rainmaker
Marketing Corporation about our commercial real estate syndicate management
services and due diligence consulting. Rainmaker Marketing
Corporation's approach is to create capital finance plans that focus on reducing
the commercial construction mortgage financing Loan-To-Value (LTV) ratio
requirement by a factor of 20%. If the market for a specific class
of commercial income-producing property construction mortgage financing is a LTV
ratio of 65%, the goal is to reduce it to a LTV ratio of 45% so that the three
(3) most important developer goals can be realized, to wit:
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Waiver
of Personal Recourse. Non-recourse
construction mortgage financing is a must for developers operating in a
recessionary business cycle. The primary goal of the commercial real
estate syndicate sales approach is to eliminate this most deadly of banking
covenants. |
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Waiver
of Cross-Collateralization Pledge. The cross-collateralization pledge
prevents developers from growing their business by controlling all of the
developer's assets for the sole benefit of the bank and at the cost of the
developer. The commercial real estate syndicate sales management
services provided by Rainmaker Marketing Corporation puts the developer back
in the driver's seat so that the cross-collateralization requirement remains
on the floor. |
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Waiver
of Cross-Default Requirement. The cross-default provision allows the
bank to burn the developer if the developer isn't current on all of the
developer's credit facilities and without regard to disputes with vendors or
any other issue. This is the most onerous and ridiculous of
requirements that commercial banks use as a means of extorting more income
for their holdings at the cost of the developer and the other promoters in
the deal. Dramatically lowering the LTV ratio forces lenders to
compete for the deal as opposed to dictating terms. |
To
get there from here, you have to create the necessary due
diligence presentation because you are making material representations of
fact and the participants in the syndication of fractional
commercial real estate interests will want independent verification of these
representations, as you have an obvious conflict-of-interest and that may be why
your proposals have been "falling on deaf ears".
Continued
on following page. | |
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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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