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Rainmaker Marketing
Corporation is the firm to turn to for commercial
real estate syndication plans and services for commercial real
estate development projects financing for pre-construction, construction
and post-construction capital funding. Most commercial real estate
syndications plans require a 90-day market exposure in order to fully
expose the syndication plan to prospective investors.
Each resulting syndicate
is offered to the public based on the tombstone "strip". Each plan will
include (note sample above):
-
Company Name
Sponsoring the Syndication (note top line in graphic above)
-
Total Amount of
Syndication Sales Contracts Available (note second line in the
graphic above)
-
Key Financial
Milestones (note third line in the graphic above)
-
Distributable Income
Targets (note third line in graphic above)
-
Minimum Purchase
(note third line in graphic above)
-
Holding Period (note
third line in graphic above)
-
Type of Contract (note
fourth line in graphic above).
Interested investors will
be directed to a specific landing page where they can download the
contract specimen, due diligence documentation and register for
participation by making a contract purchase offer. All contracts
are for face value - no discounting is provided. This means
everyone gets the same type of treatment. An offer is for a
specific percentage of real property ownership in the tenants-in-common
estate interest. The minimum investment is almost always
$25,000.00 (USD) and the buyer receives a pro-rata deed interest upon
closing. All transactions contain the following covenants:
-
Taxes are paid by the
sponsor out of operating proceeds.
-
Insurance premiums
are paid by the sponsor out of operating proceeds.
-
Maintenance is
performed by the sponsor and expensed out of operating proceeds.
The result is that each
contract presents the buyer with the following issues:
-
Distributions of
profit are on a monthly basis commencing with the month in which the
improvements and other assets of the proposed commercial real estate
development are in fact placed in service as evidenced by the
Certificate Of Occupancy or essentially similar document and
continue for the life of the contract until the buy-back is
exercised or the buyer decides to separately list their interest for
resale; and
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The buy-back option
closes out the transaction with a pre-determined exit price or
market multiple. This is not a guarantee or warrantee of
financial performance of any kind, but provides a convenient method
for quantifying the future value of the potential income stream
associated with a given commercial real estate development project;
and
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The due diligence
documentation is essentially similar to the same processes required
for a private placement offering of securities. Each listing
includes all of the documents required to substantiate the business
opportunity.
Questions? Want to
know how to get started? Contact a Rainmaker consultant and get
the answers you need.
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