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Syndications are the real opportunity in a recession that can beat the odds and senior housing is the industry to do it with...

 

 

Pre-Construction & Construction Phase Non-Recourse Project Financing...

The construction phase project financing is typically the third rung in the capitalization ladder that must be "climbed" by the project developer that includes the pre-development phase, pre-construction phase, construction phase and post-construction phase project financing proposal.  

The reality is that there are some issues that must be dealt with by the developer that institutional investors demand as a condition precedent to the institutional investor's participation and institutional investor participation is not going to come easy or cheap - established institutional investors received dozens and dozens of unsolicited capital funding proposals every business day.

The key is to understand where your money is most likely to create the greatest impact for your own benefit.  The institutional market has well-established means of sustaining its prerogatives and position; it is not likely to change.

On the other hand, if you are seeking non-recourse capital financing for your new construction project, and you need this financing as early as the pre-construction phase, then you need to be thinking about a zero-coupon fractional commercial real estate syndication  or participating in the EB-5 100% non-recourse facility financing joint-venture program (click here for more information).  The syndication route uses the classic "advertising and marketing overkill" approach, because; the cost isn't the issue, the issue is certainty of outcome and overkill ensures, more or less, that every contract in the syndicate will have three (3) or more back-ups.

Once you understand how to market and advertise these syndicates (without getting yourself in trouble with the SEC or a state securities board), then the benefits become hard to pass up on:

Syndicate funding is non-recourse.

Syndicate funding allows you to obtain your commercial bank financing on a non-recourse basis and the bank will waive the cross-default and cross-collateralization requirements as well.

Syndicate funding allows the developer to withdraw the developer's seed capital while the project is still in its pre-construction phase.  This means the developer can immediately commence due diligence on the next project (and thereby effectively doubling the developer's financing investment leverage and halving the developer's market risk exposure).

Syndicate funding is typically structured using the long-term (7-year holding period) structure with a discounted yield guarantee that is not dependent upon the developer's financial statement.

This discussion continues on Page 2

About Rainmaker...

Rainmaker Marketing Corporation is the brainchild of Clint Lovell, a seasoned business finance consultant with more than 20 years experience.  Rainmaker is a B2B consulting firm that was incorporated in 1994 for the purposes of providing market feasibility studies to businesses seeking capital financing in the commercial and institutional markets.  Today, Rainmaker Marketing Corporation provides a comprehensive array of due diligence documentation services for most major industry groups.  Rainmaker Marketing Corporation also provides syndication management services for fractional commercial real estate syndicates that can provide mezzanine gap funding for income-producing commercial property developments as early as the pre-construction phase.  Rainmaker Marketing Corporation serves clients throughout North America and the Caribbean Basin.

Rainmaker Marketing Corporation, Inc.

15519 Dawnbrook Drive, Houston, Texas 77068

281.537.1200  

consultants@rainmakermarketing.com

© Copyright, 2009 Rainmaker Marketing Corporation, Inc.  All rights reserved.

 

A Few Words on Change...

Clint Lovell, the Managing Principal of Rainmaker, has written a book on the subject of capitalism and the creation of a new economic society that ends our reliance on taxation and retires all of our national debt.  The book is called The Fix and you can order an advance copy now at www.the fixbookstore.com.  Order today and we'll pay your shipping, saving you some real change. 

What's New...

Read our latest whitepaper on capitalization strategies and commercial real estate syndications that provide developers with a new arsenal of capital finance weapons they can deploy in the middle of this recession.  Click here and download the whitepaper free! 

 

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