Feasibility Studies - Complete Market Analyses
are so-called feasibility studies and then there are project feasibility
studies that are complete, provide full support for all of the conclusions
and are fully supportable for underwriting. Rainmaker Underwriting offers
clients the peace-of-mind in the form of a working relationship with the client
from beginning to end of the assignment. All conclusions and
recommendations are based upon surveyed market evidence and eliminates empirical
assumptions wherever and whenever possible - all of which are subject to review
and being sustained in a full audit). Complete project feasibility studies
are the only way to fully check all conclusions pertaining to the market
feasibility analysis phase of the overall program analysis.
is why you should always have a full and complete feasibility study:
It is critical to the underwriting process for the developer or sponsor to
produce the required documentation when they are ordered for underwriting
review and not after the fact as this often leads to alarm bells. For
instance, allegations of poor management policy and/or improper discharge of
the fiduciary obligations the developer or sponsor would have to their
investors or the lender.
Development. In many cases, the owner or developer makes a critical
judgment error and undertakes the project design without the benefit of
knowing the expectations of consumers in the local market area. For
example, if the architect designs the building without knowing market
expectations, then undertaking the feasibility study after the fact would
place the owner/developer at a high level of risk if the complete
feasibility study recommends a different design, building size, etc. (this
would logically lead to having to do the architectural and engineering
designs all over again, and that would make the previous efforts a complete
waste of time and money).
Risk. Subjective financial investment risks can be the cause for a
launch failure for the new business or commercial-income producing property,
so our approach is to reduce and/or eliminate these risks as part of the
overall scope of work we perform.
approach is truly exhaustive in nature as the entire purpose of the feasibility
study is to confirm the proposed business model of the owner and not undertaking
the assignment in light of other site specific issues, as is often the
case. Without a full vetting of the conclusions pertaining to the market
are subject to interpretation and everyone would logically have their own
viewpoint and this can lead to disaster.
do projects fail to get funding approved?
Rainmaker has had extensive
discussions through the years with clients who are seeking funding for
their commercial income-producing property development and construction
program, but have, so far failed to do so. Rainmaker has also had
extensive discussions with intermediaries, investment bankers, lenders,
investors and underwriters to get their side of the story. The
interesting thing is that the same five (5) things seem to come up again
and again that end up leading to a total failure. Are you destined
to fail? Can you afford to take the risk of blowing out even a
single funding source, knowing that source could be the one source you
needed to succeed? What can you do to avoid these terrible
mistakes that always lead to a rejection? Click
here and learn more.